What is Return on Equity?
Net income / Shareholders' equity. Measures profitability relative to equity invested. >15% is generally good; >20% is strong. Can be inflated by high debt — cross-check with ROA.
Net income / Shareholders' equity. Measures profitability relative to equity invested. >15% is generally good; >20% is strong. Can be inflated by high debt — cross-check with ROA.