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What is the difference between return on equity and return on capital employed?

Investors can use various methods to compare different companies within the same sector. One tool is to measure the return in equity and also return of capital employed. In this article we discuss what the difference is between the two. Return on Equity The return on equity (ROE) ratio is a tool that investors can use to compare companies from the same industry to identify which is the best out of the group. It essentially measures how effective management uses …

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