Return on equity. (Florida's Top Public Companies)

Florida Trend, July, 1994

Many companies improved their performance, though some with big gains may have difficulty repeating.

The return on equity (ROE) of the FLORIDA TREND 250 shows encouraging improvement. The number of companies on the list with an ROE of at least 10% -- the minimum return acceptable to most investors -- rose to 36% last year from 30% in 1992. The number of companies with a negative ROE due to net losses or net worth deficits dropped to 86 from 98 in the prior year.

Readers should interpret a company's ROE with care. Huge returns on equity, like huge price/earnings ratios on common stocks, are not necessarily cause for unbridled joy.

For example, the list's leader, with a ROE of 6,364%, is financially troubled Major Realty. The Orlando developer has...