Return on Equity

Output: Press calculate

Formula: Return on Equity = Net Income / Shareholder's Equity

Return on Equity (ROE) is a measure of a company's profitability that reveals how much profit a company generates with the money shareholders have invested. It is a vital metric for comparing the profitability and efficiency of different companies in the same industry. ROE is particularly useful for investors as it provides insight into how effectively their capital is being utilized to generate earnings.

Tags: Finance, Profitability, ROE