The return on equity measures how well management used shareholders' investment to generate revenue during the period.

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The return on equity (ROE) is a financial ratio that reveals how much profit a company generates for each dollar of shareholders' equity. It's calculated by dividing the earnings available to common shareholders by the average common equity. ROE is widely used by investors to determine a company's profitability and efficiency in using shareholder equity to generate a profit.

The Return on Equity Measures How Well Management Used Shareholders