Return on Equity Formula |
| \( ROE \;=\; \dfrac{ NI }{ ASE } \) |
| Symbol |
| \( ROE \) = return on equity |
| \( ASE \) = average shareholders' equity |
| \( NI \) = net income |
Return on equity, abbreviated as ROE, is the ability of a firm to generate profits from its shareholders investments in the company.
