ROE
Abbreviation with 2 meanings
| Stands for | Rules of engagement |
|---|---|
| Meanings | 2 |
| Categories | Military, Business & Finance |
ROE has two meanings. It stands for Rules of engagement (military term) or Return on equity (finance).
Meanings of ROE at a glance
| # | ROE stands for | Context |
|---|---|---|
| 1 | Rules of engagement | Military › Military Term |
| 2 | Return on equity | Business & Finance › Finance |
1. Rules of engagement
Military · Military Term Abbreviations
Directives that define when, where, how and against whom military forces may use force, balancing mission needs with law, policy and politics. Troops often carry summarized ROE cards on deployment.
Example: Under the ROE, the gunner could not fire until the vehicle crossed the second warning line.
The US Standing Rules of Engagement, issued by the Chairman of the Joint Chiefs, preserve the inherent right of self-defense in all cases. Mission-specific ROE may be more restrictive. Debates about restrictive ROE featured prominently during the Afghanistan war. Pronounced as letters.
2. Return on equity
Business & Finance · Finance Abbreviations
Profitability ratio equal to net income divided by average shareholders' equity, showing how much profit a company generates with the money shareholders have invested. Investors use it to compare management efficiency across companies in the same industry, especially banks and consumer brands.
Example: With $1.2 billion of net income on average equity of $8 billion, the bank's ROE was 15 percent.
The DuPont analysis breaks ROE into net profit margin, asset turnover and financial leverage, revealing whether a high ROE comes from operations or from debt. Share buybacks and accumulated losses shrink equity and can inflate ROE, sometimes making it meaningless or negative. Warren Buffett has often cited consistently high ROE without heavy debt as a sign of business quality.
Related abbreviations
More military term abbreviations
- R&R – Rest and recuperation
- RC – Reserve component
- REMF – Rear-echelon mother******
- RIF – Reduction in force
- RTO – Radiotelephone operator
- S-1 – Personnel staff section
- S-2 – Intelligence staff section
- S-3 – Operations staff section
See all 248 military term abbreviations →