What is ROE ?Explain in layman’s language, What should be the ideal ROE for a good company to invest in?
ROE stands for Return on Equity.It tells you: “How much profit a company makes using the money invested by its shareholders.” 🧠 Imagine This: Let’s say you and some friends invest ₹10 lakh to start a small business (your equity).At the end of the year, you earn a profit of ₹1.5 lakh. Then: ROE=Profit/Equity=₹1.5 lakh/₹10 lakh=15% This…
