Return on equity

By | 2017-09-13T15:29:33+00:00 13th September 2017|

Return on equity (ROE) is the net income earned as a percentage of shareholders’ equity. Return on equity assesses a company’s efficiency by revealing how much profit a company generates with the money shareholders have invested. ROE is calculated as: Return on Equity = Net Income/Shareholder’s Equity and is expressed as a percentage.