Published on 20 Jun 2024 on Simply Wall St. · via Yahoo Finance
Boasting A 6.2% Return On Equity, Is United Utilities Group PLC (LON:UU.) A Top...
One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. By way of learning-by-doing, we'll look at ROE to gain a better understanding of United Utilities Group PLC (LON:UU.).
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 simpler terms, it measures the profitability of a company in relation to shareholder's equity.