The return on equity and its more expansive variant is what a company makes on the capital it has invested in business, and is a measure of business quality. Click to read.

Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money.

ROE Return on Equity or ROE helps investors understand if a firm’s executives are creating assets with investors’ cash or burning it. ROE shows a company’s ability to turn assets into profits.

Combining Dell Technologies' Debt And Its 50% Return On Equity It seems that Dell Technologies uses a huge volume of debt to fund the business, since it has an extremely high debt to equity ratio ...

Many REITs talk about Weighted Average Cost of Capital, or WACC. While WACC is of some use empirically, read why it is Return On Equity that matters more.

Conclusion Return on equity is useful for comparing the quality of different businesses. A company that can achieve a high return on equity without debt could be considered a high quality business.