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return on stockholders' equity

(Dictionary)

Author:
Harold Averkamp, CPA, MBA

Definition

The result of dividing a corporation’s net income by the average amount of common stockholders’ equity during the time interval when the net income was earned. To learn more about this ratio, see Explanation of Financial Ratios.

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  • Debits and Credits
  • Adjusting Entries
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  • Balance Sheet
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  • Financial Ratios
  • Bank Reconciliation
  • Accounts Receivable and Bad Debts Expense
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  • Inventory and Cost of Goods Sold
  • Depreciation
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About the Author

Harold Averkamp

For the past 52 years, Harold Averkamp (CPA, MBA) has
worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on AccountingCoach.com.

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