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return on equity (ROE)

Return on equity (ROE) is a finance term also used in enterprise risk management (ERM) term meaning net income divided by net worth.

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return on equity (ROE)

Return on equity (ROE) is a finance term also used in enterprise risk management (ERM) term meaning net income divided by net worth.

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Increasing ROE is generally preferred, and a decreasing ROE might be cause for concern.