Learn about Return on Equity (ROE), a crucial financial ratio for measuring a company's profitability and how effectively it ...

Return on equity (ROE) measures how well a company generates profits for its owners. It is defined as the business’ net income relative to the value of its shareholders' equity. It reveals the ...

Return on Equity example Return on Equity example. Let's say we want to compute the return on equity of imaginary company Joe's Holiday Warehouse, Inc., which has just reported its Q2 2022 earnings.

While some investors are already well versed in financial metrics (hat tip), this article is for those who would ...

Example: Suppose a company's net income is $500,000, and stockholder equity is $2.25 million. return on equity = (500,000 / 2,250,000) × 100 = 22% What You Need to Know.