Return on equity: Difference between revisions
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imported>Doug Williamson m (Link with Return on shareholders funds page.) |
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* [[Return on capital employed]] | * [[Return on capital employed]] | ||
* [[Return on investment]] | * [[Return on investment]] | ||
* [[Return on shareholders funds]] | |||
[[Category:Accounting,_tax_and_regulation]] | |||
[[Category:Corporate_finance]] | [[Category:Corporate_finance]] | ||
Revision as of 07:36, 23 January 2019
(ROE).
A measure of how much profit is enjoyed (or expected to be enjoyed) by equity investors, compared to the book value of the equity investment made.
Profit is measured as profit after tax.
ROE is calculated as:
Profit after tax / (book value of equity)
