Return on equity ( ROE ) is a useful metric for calculating a company's financial performance. It is calculated by dividing net income by shareholders' equity. It is a profitability ratio that depicts how well the company makes profits from equity capital. Return on equity ( ROE ) is a financial ratio that shows how well a company is managing the capital invested by it's shareholders. Know what is roe in stock market at 5paisa! Return on Equity ( ROE ) evaluates a company’s profit relative to equity. Understand the meaning, formula, limitations and its financial impact. Return on Equity, abbreviated as ROE , is a critical financial indicator that measures a company’s profitability in relation to its shareholders’ equity. It offers a window into a company’s...
