Day32. Financial term | ROE
@Tiger_Academy：
Return on Equity (ROE) is an indicator that measures the rate of return on shareholders' equity and reflects the quality of a company's profits and the management's utilization of shareholders' equity.Simply put, a higher ROE indicates better returns to shareholders and signifies more efficient utilization of shareholders' funds by the company's management.ROE helps investors understand a company's profit quality and capital operations, enabling them to better assess the investment value of the company's share.For example:Let's consider two companies, Company A and Company B, with similar business nature. However, Company A has an ROE of 15%, while Company B has an ROE of 10%. Both companies have a share price of $100, and their earnings per share are $10.According to the definition of ROE