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Finance Calculators
ROE (Return on Equity) Calculator
Calculate a company's return on equity (ROE) from net income and total shareholder equity.
Return on equity (ROE)
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About the ROE (Return on Equity) Calculator
Return on equity (ROE) measures how efficiently a company generates profit from the money shareholders have invested, making it a core measure of management effectiveness.
Formula: ROE = (Net Income ÷ Shareholder Equity) × 100
A consistently high ROE compared to industry peers can indicate a durable competitive advantage, though very high ROE can also result from heavy debt use, so it's best viewed alongside the debt-to-equity ratio.
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