This ratio measures the rate of return that shareholders receive on their investment in a business. The ROE is also a good indicator of how effective a management team is at using equity to fund operations and accelerate growth.
How to calculate the return on shareholders' equity:
Complete the fields below:
Return on equity: $0.00
Indicates the dollar amount of after-tax and after-interest profit generated for each $1 of equity. This result can postive or negative, depending on the industry standard for companies of similar size and activity.
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