Return On Equity (ROE) Calculator


Return on equity (ROE) is a measure of profitability relative to shareholder equity. Use our calculator to find your ROE.



Result Return On Equity 0%
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Formula

Return on equity = Net profit / Equity * 100

$9800 / $18500 * 100 = 52.973%, indicating a Return on Equity of 52.973%.

Meaning

The Return on Equity (ROE) is a financial metric that measures a company's profitability by dividing its net income by shareholder equity. It provides insight into how effectively a company is utilizing its shareholders' investment to generate returns. A higher ROE indicates better use of shareholder capital, while a lower ROE suggests less efficient use of funds.

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