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What is ROE - Return on Equity
Return on Equity (ROE) is a term that indicates how much net profit is attributable to one dollar on invested capital.

Return on Equity, usually the abbreviation ROE is used. It is a term that indicates how much net profit is attributable to one dollar on invested capital.

Calculation:

ROE = EAT / Equity

What is ROE for?

In the enterprise it used by CFO in financial analysis to analyze ratios. Return on equity is a key indicator especially for shareholders, partners and other investors.

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Last update: 01.08.2015

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