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Return on Equity Calculator

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First, let us answer the question: what is the return on equity? ROE (return on equity) is a ratio of profitability which shows how much profit the company has managed to make from its equity. In other words, this is the company's ability to generate profit with the shareholders' money. ROE is also known as return on net worth (RONW).

The value of ROE should be as high as possible. The higher the ROE of a company, the firmer and more beneficial its situation on the market.

The best value of ROE is roughly several dozen percent, but such a level is difficult to reach and then maintain. A good return on equity is much lower. Economists say that it is about 10-15% – such value is supposed to be likely to keep.