Return on equity ratio

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Explain the significance of the return on equity ratio. Who (what category or type of financial statement users) would normally be most interested in this ratio?
Dec 2nd, 2014

Return on Equity Ratio.

Significance: This ratio helps in evaluating the prevailing market price of share in the light of profit earning capacity. The more the return on equity, better is the performance and prospectus of the company. Thus, higher the ROE is favoured by investors. 

Shareholders and Stock market investors are very much interested in this ratio.

Dec 2nd, 2014

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Dec 2nd, 2014
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