Jun 17, 2025 · Return on equity (ROE) is a measure of a company's financial performance. It is calculated by dividing net income by shareholders' equity. Because shareholders' equity is …

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 …

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

Use this ROE calculator to easily calculate ROE (return on equity) based on the net income generated and the total value of the equity of the company or project.

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%).

Calculate the return on equity using our ROE calculator. Plus, learn the return on equity formula and steps to solve it.

Oct 1, 2024 · To calculate ROE, we would use the formula ROE = net income / shareholders’ equity. Plugging in the numbers, we get ROE = $3,000,000 / $15,000,000 = 0.2 or 20 percent. …

Calculating your own company’s return on equity ratio can help you better understand and ultimately improve your company’s financial performance, explains Nana.

Dec 22, 2025 · Return on equity (ROE) is a metric for the annual percentage return earned on shareholders’ equity. Calculate ROE as net income divided by average shareholders’ equity.