ROE

Return on equity: net income divided by shareholders' equity.

How to read it

Debt inflates it — a thin equity base makes an ordinary profit look like a high ROE — so read it beside ROA and ROIC.

How to use it

Shareholders' return on their capital.

In Kereon

Kereon shows this figure as its data vendor publishes it and does not recompute it, so the vendor's exact inputs — which period's earnings, which balance sheet, which adjustments — are not visible here. The calculation above is the standard definition.

Also called: roe, return on equity.

Related terms

The whole glossary · Investing tools