Definition
Return on equity percentage is the percentage measure of how effectively a company generates returns for shareholders. It shows up in the paperwork: ownership, rights, and what happens when things change. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.
In the room
How the word shows up in a real conversation.
Two cofounders disagree until they define Return on equity percentage. Once they agree it means “Percentage measure of how effectively a company generates returns for shareholders”, the argument becomes a decision.
Common mistake
Using Return on equity percentage as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Return on assets (ROA)
Financial ratio measuring how efficiently a company uses its assets to generate profit.
Read definition →
Return on assets formula
Mathematical calculation for determining return on assets: Net Income / Total Assets.
Read definition →
Return on assets ratio
Percentage measure of how effectively a company generates profit from its assets.
Read definition →
Return on capital (ROC)
Financial metric measuring the efficiency of capital utilization in generating returns.
Read definition →
Research more
Open the word in an AI tool with a ready prompt. We do not send your data.
Get one word every week
A 3-minute read: 1 word, 1 founder lesson, 1 tool.