Glossary
Glossary
Glossary
Return on Equity (ROE)
Return on Equity (ROE)
Definition
Measures how effectively a company uses its shareholders' equity to generate profits. It is calculated by dividing net income by shareholders' equity and is expressed as a percentage. A higher ROE indicates better financial performance and efficient use of equity (Corporate Finance Institute) (Nanonets) (Stock Analysis).
Measures how effectively a company uses its shareholders' equity to generate profits. It is calculated by dividing net income by shareholders' equity and is expressed as a percentage. A higher ROE indicates better financial performance and efficient use of equity (Corporate Finance Institute) (Nanonets) (Stock Analysis).
Related Calculator
Related Blog
Try it now
Gathering all your data has never been simpler.
Automatic Data Pulls
Set Alerts
Visual Data Preview
Try it now