Jan 29, 2024 · In this article we will discuss what return on equity is, the formula to calculate it, and an example using a publicly traded company. Click here.

Jul 6, 2025 · To calculate return on equity, divide net profits by the shareholders’ average equity. For example, if your net profits are 100,000 and the shareholders’ average equity is 62,500, …

Jun 17, 2025 · To calculate return on equity (ROE), divide a company's net income by its shareholders' equity. ROE is a gauge of a corporation's profitability and how efficiently it …

Oct 1, 2024 · Calculating return on equity is a relatively straightforward process. The formula is ROE = net income / shareholders’ equity. The net income, which is the company’s profit after …

Mar 13, 2024 · The formula to calculate the return on equity (ROE) ratio divides a company’s net income by the average balance of its book value of equity (BVE), i.e. the beginning and ending …

Oct 24, 2024 · Since your ROE measures your profitability in relation to your shareholders’ equity, you need both numbers to calculate your return on equity. The formula is: ROE = …

Feb 4, 2025 · Learn how to calculate return on equity (ROE) to evaluate your business's performance, profitability, and shareholder returns effectively.

Jul 18, 2025 · To compute ROE, you need to follow the following formula: ROE = Net Income / Shareholders’ Equity * 100. In this formula, Net Income = Profit after taxes, found on the …

Return on Equity (ROE) is the measure of a company’s annual return (net income) divided by the value of its total shareholders’ equity, expressed as a percentage (e.g., 12%).

Mar 12, 2025 · One key measure of company performance is its return on equity (ROE). The return on equity formula is fairly simple: investors can divide a company’s net income by …