May 9, 2024

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Return on Equity (ROE) is a measure of financial performance calculated by dividing net income by shareholders’ equity. Essentially, ROE indicates how effectively management is using a company’s assets to create profits. A higher ROE suggests that the company is more efficient at generating profits from every unit of shareholders’ equity. ROE is especially useful for comparing the profitability of companies in the same industry.

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About the author 

Jenna Lofton, an expert in stock trading, investing, and financial planning, combines over a decade of experience with rigorous academic training. Holding dual MBAs in Finance and Business Administration from the University of Maryland, Jenna's expertise is grounded in a deep understanding of the financial markets. Her career, which started on Wall Street, has evolved into empowering others through her insights and analyses in the dynamic world of finance.

Based in New York City, Jenna's approach is informed by her hands-on experience as a former financial advisor and her keen observation of market trends. She is known for translating complex financial concepts into actionable strategies, making her a valuable resource for both seasoned investors and newcomers to the stock market. Her commitment to financial literacy and her ability to demystify investment principles have made her a respected and authoritative voice in the investment community.

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