Return On Equity Calculator Online

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Return on Equity Calculator

Return On Equity Calculator

ROE (Return on Equity % ) is a ratio of profitability. Return On Equity Equal to net profit (INR)  divided to equity (INR) multiple 100 number of value.

Formula us,

ROE = (net profit / equity) * 100%

Let us consider,

  • ROCE considers not only the equity but also liabilities.
  • company’s ability to generate profit with the money that shareholders have invested.

Example for Return on Equity

 Now, let’s have a look at how it works in practice. Imagine a company with the following parameters:

ROE = (net profit / equity) * 100%

  • net profit: 34,500 $
  • equity: 456,000 $

What will the value of ROE be in this case?

ROE = 34,500 / 456,000 * 100%

The answer is Return On Equity = 7,57%

 

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