ROE Calculator
Return on Equity Analysis
Calculate Return on Equity (ROE) to measure how effectively your company generates profits from shareholders' equity. Essential metric for investment analysis and shareholder value assessment.
Key indicator of management effectiveness and shareholder value creation
Calculate how effectively your business generates profit from shareholders' equity
Return on Equity
Excellent
Equity Efficiency
Profit per ₹100 of equity
Calculation Breakdown
ROE shows how much profit a company generates for each rupee of shareholder equity. It reflects management's ability to use equity capital efficiently. A higher ROE typically means better capital allocation.
📈Advantages
- • Helps compare company profitability
- • Simple metric for shareholders to evaluate performance
- • Useful for long-term investors and financial analysts
⚠️Disadvantages
- • Can be distorted by high debt or low equity
- • Doesn't show risk or sustainability of earnings
- • May not reflect true economic value creation
🧠Use Cases
- • Stock analysis
- • Investor presentations
- • Startup performance reviews
- • Comparing companies within same sector
Formula
Expressed as a percentage
Example Calculation
Industry Benchmarks
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