Equity Analysis: Return on Equity (ROE)
Interactive

Equity Analysis: Return on Equity (ROE)

Intuition Publishing
Updated Sep 24, 2020

Return on equity (ROE) is the amount of net income returned as a percentage of shareholders equity. A high ROE is favorable for shareholders. Here we look at how to calculate ROE and break it down into its component parts. We also review how to interpret the ROE number.