Return on Equity (RoE): A Comprehensive Guide for Angel Investors, Entrepreneurs, and Venture Capitalists
Return on Equity (RoE) is one of the most essential financial metrics for evaluating a company’s profitability in relation to its shareholders’ equity. It’s a critical indicator for decision-making, especially for angel investors, entrepreneurs, and venture capitalists who are keen on maximising returns while mitigating risk. RoE offers an insightful glance into how efficiently a company is using its capital to generate profits, ultimately determining its long-term viability and attractiveness for investment.
