ROE (Return on Equity) is an indicator used to assess a company's profitability; the higher it is, the better the company's profitability. However, excessive reliance on it can lead to neglect of leverage risks and one-time gains. It should be analyzed alongside ROA and ROI to comprehensively evaluate the company's true operational efficiency. Buffett's preference for high ROE is not an absolute indicator; a stable ROE is more reliable. Investors need to maintain independent thinking and carefully assess risks and rewards.

This article provides a detailed analysis of the definition, calculation methods, and applications of Return on Investment (ROI) in the TradFi and encryption asset markets, emphasizing the importance and limitations of ROI, offering optimization strategies, and providing calculation examples in different investment scenarios to help investors more accurately assess investment opportunities.

ROE is a crucial financial indicator in the investment field, not only a stock selection tool favored by Buffett but also an important standard for evaluating a company's capital efficiency. This article will comprehensively analyze the definition of ROE, its calculation method, application strategies, and comparisons with other financial indicators, helping investors establish a systematic ROE analysis framework.
The professional definition and significance of ROE
ROE (Return on Equity) stands for the net asset return rate, also known as the shareholder equity return rate or net value return rate. It is a core indicator that measures the efficiency of a company in generating profits through the use of shareholder capital. It directly reflects the return level of the capital invested by shareholders by calculating the percentage of net profit to average shareholder equity.
From a financial structure perspective, ROE deeply reveals how companies utilize shareholder equity to create value. A high ROE typically indicates that a company can effectively use shareholder funds, but investors must also discern whether this high efficiency stems from excellence in.

Return on Investment(ROI) is an important indicator for evaluating investment effectiveness. This article introduces the concept of ROI, its calculation methods, practical applications, and comparisons with other financial indicators. It clarifies strategies for improving ROI and emphasizes the need to consider time factors, risk levels, and comprehensive cost accounting when using it, helping readers make better investment decisions.

ROE (Return on Equity) reflects a company's ability to utilize shareholder funds, calculated as net profit divided by net assets. The ROE value is crucial when selecting stocks, with the optimal range being 15%-25%, and historical stability should be considered. Buffett believes that companies with a sustained ROE above 20% are excellent. When selecting stocks, it should be paired with other indicators and data should be obtained from relevant websites.

This article provides a detailed explanation of the Return on Equity (ROE), explaining its importance and calculation methods, and analyzing the differences between ROE and other financial indicators such as ROA and ROI. The article suggests that investors choose companies with a stable ROE between 15% and 25%, emphasizing the importance of continuity, while also providing resources for checking ROE and the ROE rankings for stocks in Taiwan, the U.S., and Hong Kong in 2023. Finally, it reminds investors to think independently and be cautious of risks.

Return on Investment (ROI) is an indicator for assessing the effectiveness of investments, calculated using the formula (Investment Gains - Investment Costs) / Investment Costs × 100%. The article explores the application of ROI in fields such as stock investment and digital marketing, and compares it with ROA and ROE, emphasizing the importance of annualized ROI and strategies to improve ROI. It provides an overview of different investment methods and points to consider, to assist investors in making more informed decisions.

This essay discusses ROI (Return on Investment), explaining its definition, calculation, and practical applications. It outlines methods to increase ROI, examines high-yield investment strategies, and highlights cautionary considerations.

The basic concept of Return on Investment (ROI)
Return on Investment ( (ROI) ) is a key financial metric used to measure the return or profit from an investment, typically expressed as a percentage, and is widely used to evaluate the effectiveness of various investment projects.
This indicator is not only applicable to individual investment decisions but can also be used to compare corporate profitability and investment efficiency. In the highly volatile environment of the cryptocurrency market, the analysis of ROI is particularly important, as it helps investors objectively assess the balance between risk and return.
The basic calculation method of ROI
The return on investment is essentially the percentage ratio of net profit and loss to total invested capital. Net profit and loss is the result of investment income minus investment costs.
Standard ROI Calculation Formula
ROI = ( Net Profit and Loss ÷ Investment Cost ) × 100%
To illustrate with a basic example: Suppose you invest 1 million to purchase a certain cryptocurrency asset, and later sell it for 1.3 million, the ROI calculation is:

What is Return on Investment (ROI)?
Return on Investment (ROI), also known as ROI, is a financial metric that measures profitability and is widely used to assess the returns or earnings of an investment, typically expressed as a percentage.
It has a wide range of applications, not only for personal financial decisions but also for comparing a company's profitability and the efficiency of different investments, applicable in both traditional financial markets and the cryptocurrency investment sector.
How is the return on investment calculated?
The return on investment, simply put, is the percentage of net profit and loss from the investment relative to the total invested capital, where net profit and loss is the net gain/loss after subtracting investment costs from investment income.
The formula for return on investment is as follows:
ROI = ( net profit and loss / investment cost ) × 100%
For a simple example, if you buy a certain cryptocurrency asset for 1 million and then sell it for 1.3 million, the return on investment (ROI) = (1.3 million - 1 million.