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What is return on equity?

In this video, Ed Bowsher explains how to calculate return on equity, and why it could be useful to you.

When you analyse a company, its easy just to focus on how much profit a company is making. But that can be a dangerous trap. A business might generate a decent profit, but still deliver a poor return on shareholders equity.

So in this video, Ed Bowsher explains how to calculate 'return on equity'and why it could be useful to you.

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