Published on 20 Jun 2024 on Simply Wall St. · via Yahoo Finance
Boasting A 22% Return On Equity, Is Vail Resorts, Inc. (NYSE:MTN) A Top Quality...
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 Vail Resorts, Inc. (NYSE:MTN), by way of a worked example.
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.