Return on Equity (ROE)
Formula
Net Income / Average Stockholders' Equity
Interactive Calculator
| Component | Value |
|---|---|
| Net Income | |
| Average Stockholders' Equity | |
| Return on Equity | — |
CategoryProfitability
ComponentsReturn on Equity; Net Income; Average Stockholders' Equity
Example120K / 500K = 24%
Related Subjects
See Also
- Net IncomeBoth part of Return on Equity (ROE)
External Links
- Return on equity — Wikipedia