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Healthcare Glossary

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Return on equity (ROE)

A measure of a company's profitability involving finding the ratio of net income to the company's net worth.
REO is the amount of net income conveyed as a percentage of shareholders equity.
ROE is expressed as a percentage and may be calculated as:

Return on Equity = Net Income/Shareholder's Equity

See also:
Cost–benefit analysis
Cost consequences analysis (CCA)
Shareholder value

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