The return on equity and its more expansive variant is what a company makes on the capital it has invested in business, and is a measure of business quality. Click to read.

Combining Dell Technologies' Debt And Its 50% Return On Equity It seems that Dell Technologies uses a huge volume of debt to fund the business, since it has an extremely high debt to equity ratio ...

ROE Return on Equity or ROE helps investors understand if a firm’s executives are creating assets with investors’ cash or burning it. ROE shows a company’s ability to turn assets into profits.

Conclusion Return on equity is useful for comparing the quality of different businesses. A company that can achieve a high return on equity without debt could be considered a high quality business.

Many REITs talk about Weighted Average Cost of Capital, or WACC. We look at three of them, from the Net Lease sector. While WACC is of some use empirically, it is Return On Equity that matters more.