Return on equity or ROE is one of the profitability ratios used to determine how well a company has performed financially during the current fiscal year. It is an important number, which indicates how much return a company is able to make for the total equity it has. A strong and consistent ROE above 15% shows the company's ability to make above 15% return for every dollar of invested capital.
The formula for determining the return on equity (ROE) is defined as:
\(ROE\): Return on equity
\(Net\text{ }Income\): How much money company is making after all expenses have been paid including taxes.
\(Total\text{ }Equity\): The amount of money the company has from its initial investment or the total value of investor's stake in the company.
The ROE is measured in: \(\%\)
Find ROE
Use this calculator to find the Return On Equity (ROE) of a company.
How much money company is making after all expenses have been paid including taxes.
enter a number in thousands, enter 5 for 5,000 or 50 for 50,000
The amount of money the company has from its initial investment or the total value of investor's stake in the company.
enter a number in thousands, enter 5 for 5,000 or 50 for 50,000
Please note, that all calculators provided are for informational and educational purposes ONLY, and should NOT be taken as professional financial advice.
