• Education
    • Reference
      • Dictionary
      • Investing 101
      • The 4 Best S&P 500 Index Funds
      • World's Top 20 Economies
      • Stock Basics Tutorial
      • Options Basics Tutorial
      • Economics Basics
    • Topics
      • Stocks
      • Mutual Funds
      • Options
      • Tech
      • ETFs
      • Bonds/Fixed Income
      • Commodities
  • Markets
    • News
      • Watchlist
      • Company News
      • Market/Economy News
    • Popular Stocks
      • Apple (AAPL)
      • Tesla (TSLA)
      • Amazon (AMZN)
      • AMD (AMD)
      • Facebook (FB)
      • Netflix (NFLX)
  • Simulator
    • Simulator
      • Create an Account
      • Join a Game
    • My Simulator
      • My Game
      • Create a Game
  • Your Money
    • Personal Finance
      • Credit
      • Budgeting/Saving
      • Taxes
      • Retirement
      • Mortgage
      • Insurance
      • Small Business
      • Wealth Management
    • Reviews & Ratings
      • Broker Reviews
      • Charles Schwab Review
      • E*TRADE Review
      • Robinhood Review
  • Advisors
    • Financial Advice
      • Advisor Insights
      • Investopedia 100
    • For Financial Advisors
      • Join Advisor Insights
      • Your Practice
  • Academy
    • Popular Courses
      • Investing for Beginners
      • Become a Day Trader
      • Trading for Beginners
      • Technical Analysis
    • Courses by Topic
      • All Courses
      • Trading Courses
      • Investing Courses
      • Financial Professional Courses
  • Login
  • Advisor Login
  • Newsletters
Investing
  • Financial Analysis
  • Investing Strategy
  • Bonds / Fixed Income
  • Mutual Funds
  • Stocks
  • ETFs
  • Real Estate
  • International / Global
  • Alternative Investments
  • Commodities
  • Asset Allocation
  • Annuities
  • Brokerages
  • Options
  • Futures
  • Sustainable Investing
Investing Financial Analysis

Financial Analysis

Learn financial analysis from ratios to inventory valuation for investors and everything in between.

Investing
  • Financial Analysis
  • Investing Strategy
  • Bonds / Fixed Income
  • Mutual Funds
  • Stocks
  • ETFs
  • Real Estate
  • International / Global
  • Alternative Investments
  • Commodities
  • Asset Allocation
  • Annuities
  • Brokerages
  • Options
  • Futures
  • Sustainable Investing

Return on Equity – ROE Definition

Return on equity (ROE) is a measure of financial performance calculated by dividing net income by shareholders' equity. Because shareholders...

  • Quarter - Q1, Q2, Q3, Q4

  • Free Cash Flow - FCF

  • Working Capital Definition

  • Weighted Average Cost of Capital – WACC Definition

  • Current Ratio Definition

  • Earnings Per Share – EPS Definition

  • Debt-to-Equity Ratio – D/E Definition

  • Capital Expenditure – CapEx Definition

  • Equity Definition

  • Sharpe Ratio Definition

  • Beta Definition

  • Opportunity Cost Definition

  • Leverage Ratio Definition

  • Balance Sheet Definition

  • Inventory Turnover Definition

  • Initial Public Offering - IPO Definition

  • Generally Accepted Accounting Principles - GAAP

  • Retained Earnings Definition

  • What is the formula for calculating profit margins?

  • Why would a company buy back its own shares?

  • What is the formula for calculating internal rate of return (IRR) in Excel?

  • Income Statement

  • How to Calculate the Inventory Turnover Ratio?

  • What is the formula for calculating net present value (NPV) in Excel?

  • Accounts Receivable - AR

  • Liquidity Ratio Definition

  • Asset Turnover Ratio Definition

  • T-Test Definition

  • What is the formula for calculating net present value (NPV)?

  • Cash Flow

  • Cash Conversion Cycle - CCC Definition

  • Accounting Equation Definition

  • Quick Ratio Definition

  • Gross Profit Definition

  • What is the Formula for Weighted Average Cost of Capital (WACC)?

  • Goodwill Definition

  • What is the formula for calculating earnings per share?

  • Weighted Average Definition

  • DuPont Analysis Definition

  • Amortization

  • Net Profit Margin Definition

  • Sensitivity Analysis

  • Current Assets Definition

  • What Investments Are Considered Liquid Assets?

  • Days Payable Outstanding – DPO Definition

  • Monte Carlo Simulation Definition

  • Variable Cost Definition

  • How to Calculate Return on Equity (ROE)

  • Unlevered Beta Definition

  • Pro Forma

  • What is the Formula for Calculating the Current Ratio?

  • Contribution Margin Definition

  • FYI on ROI: A Guide to Calculating Return on Investment

  • How do I calculate the P/E ratio of a company?

  • Cash Flow From Operating Activities (CFO)

  • Market value versus book value

  • Rate of Return – RoR Definition

  • Reading the Balance Sheet

  • The Formula for Calculating Ebitda (With Examples)

  • What Is the Formula for Calculating Free Cash Flow?

  • Rule of 72 Definition

  • Reverse Stock Split

  • What's the difference between gross profit margin and net profit margin?
  • Terms
  • News
  • Tutorials
  • About Us
  • Advertise
  • Contact
  • Privacy Policy
  • Terms of Use
  • Careers
  • #
  • a
  • b
  • c
  • d
  • e
  • f
  • g
  • h
  • i
  • j
  • k
  • l
  • m
  • n
  • o
  • p
  • q
  • r
  • s
  • t
  • u
  • v
  • w
  • x
  • y
  • z
Investopedia is part of the Dotdash publishing family.
  • The Balance
  • Lifewire
  • TripSavvy
  • The Spruce
  • and more