Home · RATIOXA GLOSSARY

Return on equity

Property investment return relative to equity invested, influenced by leverage.

01

Simple definition

Property investment return relative to equity invested, influenced by leverage.

02

Why it matters

This term changes how inputs, cash flows or results should be interpreted. RATIOXA keeps it explicit so two options are compared on the same basis.

03

Worked example

A positive property gain can create a high but riskier percentage on a small equity base.