Rules of the Game: Hidden ROE Gems
One of the fundamental metrics I've relied on for years is return on equity. This ratio -- calculated by dividing shareholder equity into net income -- indicates how much profit a company creates with money that's been invested.
Return on equity, along with growth in cash flow per share, profit margins, and sales and earnings, can be a predictor of share price appreciation. It's also a good way of comparing profitability of companies within the same industry subsector....401 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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