Published on 9 May 2024 on Simply Wall St. via Yahoo Finance
Is Golden Entertainment, Inc.'s (NASDAQ:GDEN) 48% ROE Better Than Average?
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. We'll use ROE to examine Golden Entertainment, Inc. (NASDAQ:GDEN), by way of a worked example.
ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. In short, ROE shows the profit each dollar generates with respect to its shareholder investments.