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Return on equity (ROE) formula  (ID: 248) [Edit]

Tags:  corporate finance financial analysis metric

Description of the Return on equity (ROE) formula

Formula for the calculation of the return on equity (ROE).

Formula

\[ \text{ROE} = \frac {\text{Net Income}} {\text{Book value of Equity}} \ \]

Additional information related to this formula

Related financial formulas

Return on assets (ROA)   •   Return on capital employed (ROCE)