Company analysis
What is roe?
How much profit a company makes on the money its owners have put in.
Explained in more detail
ROE stands for return on equity. A consistently high ROE suggests the business converts owner capital into profit efficiently. A high ROE achieved by borrowing heavily is less impressive, so it should always be read alongside debt.
An example
For instance₹20 crore profit on ₹100 crore of shareholder funds is a 20% ROE.
Why this matters to you
You will meet this word in broker apps, company results and market news. Knowing what it means is not the goal on its own. The goal is being able to judge whether a number is good or bad for the investment you are actually holding.
On AlphaVik, any time roe appears in a view or a lesson, you can hover or tap the word and this explanation comes with it. You never have to leave the page to look something up.