Return on equity | Business Strategies for Management

Return on equity | Business Strategies for Management: "This ratio is of special important because it is the only ratio that can be used to compare firms directly in different industries.  It reveals the rate of return on the funds that have been invested by owners.  The return remains the best single measure of a firm’s performance.  A return on equity above 20% is generally considered quite superior; and to maintain a return on equity at a level above that point for a period of years is a real mark of corporate excellence."

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