ROE is a profitability ratio that measures the ability of a firm to generate earnings from the equity of its shareholders. Return on equity ratio is a key indicator of the financial efficiency of the company and reveals how well it is utilising its capital to create profits. Return on equity ( ROE ) is a financial ratio that compares the net income generated by investors' capital, indicating how efficiently the capital is utilized. Return on Equity ( ROE ) evaluates a company’s profit relative to equity. Understand the meaning, formula, limitations and its financial impact. Return on Equity, abbreviated as ROE , is a critical financial indicator that measures a company’s profitability in relation to its shareholders’ equity. It offers a window into a company’s...
