Return on equity is a financial ratio that shows how well a company is managing the capital that shareholders have invested in it. To calculate ROE, one would divide net income by shareholder equity.

How to Calculate Return on Equity The ratio is calculated by dividing net income by book value. Net income can be found on the income statement of a company’s regular quarterly or annual filing ...

Find out more about return on equity, the formula to calculate ROE, and how to calculate this measure of corporate profitability in Microsoft Excel.

The return on equity, also called ROE, measures the company's income based on the amount of shareholder equity. The higher the ROE, the more efficiently the company is using the equity invested in ...

Calculating return on equity. Image Source: The Motley Fool. You can calculate return on equity by taking a year's worth of earnings and dividing that by the average shareholder equity for that year.

Dividing $6.3 billion (income) by $9.3 billion (equity) yields a rate of return on equity of 68%. That percentage means that Home Depot generated $0.68 of profit for every $1 that management had ...

Calculating return on equity is possible, though investors and company directors may not approve of the resulting financial figure. Net Income Definition. In simple terms, ...

Return on Assets is a measure of a company's profitability expressed as a percentage of its total assets, not to be confused with return on capital employed—a nebulous phrase demanding a ...

Return on equity (ROE) is a financial ratio that tells you how much profit a public company earns in comparison to the net assets it holds. ROE is very useful for comparing the performance of ...