ROE return on equity

ROE measures how much profit a company generates for every euro put in by its shareholders. A high, sustained ROE points to a business that reinvests successfully, but it should be read alongside leverage: debt can inflate ROE without improving the underlying business at all, because it shrinks the equity sitting in the denominator.

See the full glossary · What the Celsmar financial terminal is

Definition for informational purposes. It is not financial advice nor a recommendation to buy or sell.