===== What is a good value for return on equity (ROE)? =====

ROE is calculated by dividing net profit by total shareholders equity. 

For the first few years, most start-ups are not profitable, so ROE will be negative, and that is okay. Once a company becomes mature, an ROE of 15% to 20% is generally considered good.

{{keywords>return on equity, ROE, value, balance sheet}}

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