Return On Equity AnalysisReturn on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how effecently a company utilizes investments to generate income.
About Return On EquityFor most industries Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
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Based on latest financial disclosure Alphabet has Return On Equity of 10.51%. This is 134.11% lower than that of the Technology sector, and significantly higher than that of Internet Content & Information industry, The Return On Equity for all stocks is 169.28% lower than the firm.