Return On Equity. To determine jkl’s return on equity, you would divide $35.5 million by $578 million, which would give you 0.0614. Return on equity (roe) is important to measure the company’s efficiency in generating profits using its equity capital.
Let’s say your company has a net income of $12,000 and shareholders’ equity of $80,000. What is return on equity (roe)? Multiply by 100, and make it a percentage you get 6.14%.
Return on Equity (ROE) Formula, Examples and Guide to ROE
What is return on equity (roe)? The return on equity (roe) is a measure of the profitability of a business in relation to the equity. Return on equity (roe) is important to measure the company’s efficiency in generating profits using its equity capital. Return on equity, or roe, is a measure of how efficiently a company is using shareholders' money.since efficient companies tend to be more profitable companies, and.
