Return on Common Equity

Return on Common Equity

A publicly-traded company's earnings (less dividends on preferred shares) divided by the amount of money invested in common stock, expressed as a percentage. This is a measure of how well the company is investing the money invested in it. A high return on common equity indicates that the company is spending wisely and is likely profitable; a low return on common equity indicates the opposite. As a result, high returns on common equity lead to higher stock prices. Some analysts believe that return on common equity is an extremely important indicator in publicly-traded companies' health. See also: Growth stock.
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Return on common equity ("ROE) of 11%; Return on tangible common equity ("ROTCE") of 23% (b).
For the fourth quarter of 2012 the annualized return on assets was 0.46%, while return on common equity was 5.40%.
Equity 0.00% 0.00% 0.00% = Return On Common Equity (ROE) (48.56%) (23.10%) (27.42%) 1995 1996 1997 1998 = Return on Equity (excl.
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