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We wonder if and what role the company's financials play in that price change as a company's long-term fundamentals usually dictate market outcomes. ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the kessage it received from its shareholders. Simply put, it is used to assess the profitability of a company in relation to its equity capital. The 'return' is the income the business earned over the last year. We have already established that ROE serves as jessage efficient profit-generating gauge for a company's future earnings.
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