Net income divided by shareholders’ equity.
ROE shows how much profit a company earns on shareholders’ capital. It can be inflated with debt, which is why ROIC is often more telling. For banks, ROE is a central metric.
Net income divided by shareholders’ equity.
ROE shows how much profit a company earns on shareholders’ capital. It can be inflated with debt, which is why ROIC is often more telling. For banks, ROE is a central metric.