Return on Equity

Return on Equity (ROE) measures how effectively a company uses shareholders’ invested money to generate profit. It is calculated by dividing net income by shareholders' equity (the owners' share of the company). A higher ROE indicates that the company is efficiently turning shareholders' investments into profits, reflecting good management and financial health. It helps investors assess how well their investment is performing relative to other companies. ROE is an important indicator for evaluating the company's profitability and their potential return on investment.