Word
ROE
Phoneticsroe
US/ˈɹoʊ/
UK/ɹˈəʊ/
Countable & uncountable
Definition
n. Stands for Return on Equity. A way to measure how much profit a company makes compared to the money its owners have invested. It helps investors see if a business is using their money efficiently.
n. Abbreviation for Return on Equity. A financial ratio calculated by dividing net income by shareholders' equity. It is used as a measure of a corporation's profitability and the efficiency with which its capital is employed.
Examples
“Investors look at the ROE to see if the company is profitable.”
“The analyst recommended the stock because the company maintained a high ROE despite the economic downturn.”
“While a high ROE is generally positive, it can sometimes be misleading if a company carries excessive debt, which artificially inflates the ratio by reducing the equity base.”
Examples
simple
“Investors look at the ROE to see if the company is profitable.”
contextual
“The analyst recommended the stock because the company maintained a high ROE despite the economic downturn.”
complex
“While a high ROE is generally positive, it can sometimes be misleading if a company carries excessive debt, which artificially inflates the ratio by reducing the equity base.”
Usage
Usually treated as an acronym (Return on Equity); often used with the definite article 'the' or as a modifier before another noun.
Word family
NOUN
Related words
Idioms
01. Jane Roe
02. Richard Roe
- Exam level
- CambridgeCambridgeCambridge English QualificationsThe exam suite from Cambridge University Press & Assessment, from A1 Movers up to C2 Proficiency. The benchmark names double as CEFR labels.C1 AdvancedIELTSIELTSInternational English Language Testing SystemThe 0–9 band test co-owned by the British Council, IDP, and Cambridge. Used for university entry, work, and migration.7.0–8.0TOEFL iBTTOEFL iBTTest of English as a Foreign Language, Internet-Based TestETS's academic English test, the standard route for US university admissions. Scored 0–120, with a 1–6 scale since 2026.1–6 scale: 5.0–5.595–113TOEICTOEICTest of English for International CommunicationETS's workplace English test, big in Japan and Korea. Listening & Reading scores 10–990 and tops out at C1.945–990
- Frequency
- Frequent
- Level
- C1 · Advanced
- Updated
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