Return on Equity
Return on Equity (ROE) is a measure of the efficiency with which a company uses its assets to produce earnings.
ROE is calculated by dividing Net Income by Book Value.
ROE = Net Income / Book Value
Investors who use this metric are looking for companies with a competitive advantage, that are able to squeeze the most profits from their assets.
Use caution since some companies may lower book value through accounting maneuvers, by taking write-downs, through stock buy backs, or raising funds through large debt, etc., thus raising their ROE. Looking at ROE history can help elucidate the situation.
When you are analyzing potential option positions, it helps to have a computer program like Option-Aid that swiftly calculates volatility impacts, probabilities, statistics, and other parameters of interest. These programs can pay for themselves with the first trade that they help you with.
Buy Option-Aid Today and Maximize Your Profits!
As you start using this valuable option software program and become familiar with the vast amount of information it puts at your fingertips, it quickly becomes an indispensable tool for evaluating option positions.
Information is the Key to Increasing Wealth
Option-Aid is a great trading tool for playing out "what-if" scenarios to maximize your profits and minimize your losses. It has many features to give you the Trader's Advantage.
Buy it today! Profits from your first position can more than pay for the program. Your order will be placed through a secure server.
It will change your future! Order it now!
Get FREE Option Tips
The Option Trading Tips Newsletter is published by MindXpansion, the developers of Option-Aid. This newsletter gives you information for maximizing your profits in options trading, including option strategies and market indicators. Fill in the following information to subscribe to this FREE service.