what is a roe

A “roe” can mean different things depending on context, but the two most common meanings today are fish eggs (in food) and return on equity (in finance).

Roe in food

In food, roe usually means:

• The fully ripe eggs of fish and some marine animals, often eaten as a delicacy.

• It can be served fresh, salted, or processed into caviar, especially when it comes from sturgeon.

• The term “soft roe” or “white roe” actually refers to fish milt (sperm), not eggs, even though it uses the same word.

ROE in finance (Return on Equity)

In investing and business, ROE (usually written in all caps) stands for Return on Equity.

• It is a profitability ratio that measures how much net income a company generates for each dollar of shareholders’ equity.

• The basic formula is: ROE = net income ÷ average shareholders’ equity, expressed as a percentage.

• Investors use ROE to compare how efficiently different companies use owners’ capital to generate profits; ROE in the mid-teens or higher is often seen as strong, depending on the industry.

Other uses of “roe” / “ROE”

The word or abbreviation can also refer to other things:

• Roe deer, a small species of deer found in Europe and parts of Asia.

• ROE as a shorthand for other names or titles, such as Royal Observatory Edinburgh, or the game “Ring of Elysium.”

• As a surname or pseudonym (like “Jane Roe” in Roe v. Wade).

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