Havoc's Blog

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Return on Equity

Most people know about the price/earnings ratio. If you want to learn one more thing about financial numbers, return on equity could be a good choice. Return on equity is annual profit divided by net worth. If you have $100 in net worth, and make $10 in annual profit, then you are making 10% ROE. […]


Even though I spend all day as a software developer, I find it useful to understand something about financial and business topics. Many people (including a much younger version of myself) reflexively dismiss business – marketing, finance, etc. – as irrelevant to them. Sometimes this is because people think of business as in some way […]