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Return on equity (ROE)
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Return on equity (ROE)Indicator of profitability. Determined by dividing net income for the past 12 months by common stockholder equity (adjusted for stock splits).
RELATED TERMS--------------------------------------
Indicator
Anything used to predict future financial or economic trends.
Profitability
The ability of a business to earn profits (to be profitable).
Income
Money received by an individual as a salary, or from investments. Cash deposits and bonds will provide income in the form of interest. Shares will, in most but not all cases, provide income in the form of twice-yearly dividends.
Equity
1) Ownership interest in a firm. 2) The residual dollar value of a futures trading account, assuming its liquidation is at the going trade price. 3) In real estate, dollar difference between what a property could be sold for and debts claimed against it. 4) In a brokerage account, equity equals the value of the account's securities minus any debit balance in a margin account. 5) Shorthand for stock market investments.
Stock
US equivalent of the British word "share", a block of shares with a nominal value of 100, or various kinds of fixed-interest securities; in Britain, goods stored ready for sale, raw materials, work in progress and finished but unsold products.
SIMILAR TERMS--------------------------------------
Return
The change in the value of a portfolio over an evaluation period, including any distributions made from the portfolio during that period.
Return if exercised
The return that a covered call writer would make if the underlying stock were called away.
Return of capital
A cash distribution resulting from the sale of a capital asset, or securities, or tax breaks from depreciation.
Return on assets (ROA)
Indicator of profitability. Determined by dividing net income for the past 12 months by total average assets. Result is shown as a percentage.
Return on capital employed (ROCE)
Indicator of profitability of the firm's capital investments. Determined by dividing Earnings Before Interest and Taxes by (capital employed plus short-term loans minus intangible assets).
Return on investment (ROI)
The amount earned in direct proportion to the capital invested.
Return on sales
A measurement of operational efficiency equaling net pre-tax profits divided by net sales expressed as a percentage.
Return on sales or profit margin
Sales revenue minus all operating expenses divided by the number of sales.
Return on total assets
The ratio of earnings available to common stockholders to total assets.
Return to maturity expectations
A variant of pure expectations theory that suggests that the return an investor will realize by rolling over short-term bonds to some investment horizon will be the same as holding a zero-coupon bond with a maturity that is the same as that investment horizon.
PREVIOUS AND NEXT TERMS--------------------------------------
Return
The change in the value of a portfolio over an evaluation period, including any distributions made from the portfolio during that period.
Return if exercised
The return that a covered call writer would make if the underlying stock were called away.
Return of capital
A cash distribution resulting from the sale of a capital asset, or securities, or tax breaks from depreciation.
Return on assets (ROA)
Indicator of profitability. Determined by dividing net income for the past 12 months by total average assets. Result is shown as a percentage.
Return on capital employed (ROCE)
Indicator of profitability of the firm's capital investments. Determined by dividing Earnings Before Interest and Taxes by (capital employed plus short-term loans minus intangible assets).
Return on equity (ROE)
Return on investment (ROI)
The amount earned in direct proportion to the capital invested.
Return on sales
A measurement of operational efficiency equaling net pre-tax profits divided by net sales expressed as a percentage.
Return on sales or profit margin
Sales revenue minus all operating expenses divided by the number of sales.
Return on total assets
The ratio of earnings available to common stockholders to total assets.
Return to maturity expectations
A variant of pure expectations theory that suggests that the return an investor will realize by rolling over short-term bonds to some investment horizon will be the same as holding a zero-coupon bond with a maturity that is the same as that investment horizon.
RELATED TERMS--------------------------------------
Indicator
Anything used to predict future financial or economic trends.
Profitability
The ability of a business to earn profits (to be profitable).
Income
Money received by an individual as a salary, or from investments. Cash deposits and bonds will provide income in the form of interest. Shares will, in most but not all cases, provide income in the form of twice-yearly dividends.
Equity
1) Ownership interest in a firm. 2) The residual dollar value of a futures trading account, assuming its liquidation is at the going trade price. 3) In real estate, dollar difference between what a property could be sold for and debts claimed against it. 4) In a brokerage account, equity equals the value of the account's securities minus any debit balance in a margin account. 5) Shorthand for stock market investments.
Stock
US equivalent of the British word "share", a block of shares with a nominal value of 100, or various kinds of fixed-interest securities; in Britain, goods stored ready for sale, raw materials, work in progress and finished but unsold products.
SIMILAR TERMS--------------------------------------
Return
The change in the value of a portfolio over an evaluation period, including any distributions made from the portfolio during that period.
Return if exercised
The return that a covered call writer would make if the underlying stock were called away.
Return of capital
A cash distribution resulting from the sale of a capital asset, or securities, or tax breaks from depreciation.
Return on assets (ROA)
Indicator of profitability. Determined by dividing net income for the past 12 months by total average assets. Result is shown as a percentage.
Return on capital employed (ROCE)
Indicator of profitability of the firm's capital investments. Determined by dividing Earnings Before Interest and Taxes by (capital employed plus short-term loans minus intangible assets).
Return on investment (ROI)
The amount earned in direct proportion to the capital invested.
Return on sales
A measurement of operational efficiency equaling net pre-tax profits divided by net sales expressed as a percentage.
Return on sales or profit margin
Sales revenue minus all operating expenses divided by the number of sales.
Return on total assets
The ratio of earnings available to common stockholders to total assets.
Return to maturity expectations
A variant of pure expectations theory that suggests that the return an investor will realize by rolling over short-term bonds to some investment horizon will be the same as holding a zero-coupon bond with a maturity that is the same as that investment horizon.
PREVIOUS AND NEXT TERMS--------------------------------------
Return
The change in the value of a portfolio over an evaluation period, including any distributions made from the portfolio during that period.
Return if exercised
The return that a covered call writer would make if the underlying stock were called away.
Return of capital
A cash distribution resulting from the sale of a capital asset, or securities, or tax breaks from depreciation.
Return on assets (ROA)
Indicator of profitability. Determined by dividing net income for the past 12 months by total average assets. Result is shown as a percentage.
Return on capital employed (ROCE)
Indicator of profitability of the firm's capital investments. Determined by dividing Earnings Before Interest and Taxes by (capital employed plus short-term loans minus intangible assets).
Return on equity (ROE)
Return on investment (ROI)
The amount earned in direct proportion to the capital invested.
Return on sales
A measurement of operational efficiency equaling net pre-tax profits divided by net sales expressed as a percentage.
Return on sales or profit margin
Sales revenue minus all operating expenses divided by the number of sales.
Return on total assets
The ratio of earnings available to common stockholders to total assets.
Return to maturity expectations
A variant of pure expectations theory that suggests that the return an investor will realize by rolling over short-term bonds to some investment horizon will be the same as holding a zero-coupon bond with a maturity that is the same as that investment horizon.
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This dictionary contains 24549 terms.
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