ROE (Return on Equity) is net profit divided by shareholders' equity - profit per rupee of owner capital.

High sustainable ROE often signals a strong, well-run franchise.

What is a common mistake with ROE?

Throwing around “ROE” without the simple meaning.

Learn these first

You'll understand ROE much faster if you learn these first.

Lesson60 seconds

What is ROE?

How hard the company makes owners' money work.

Step 1 of 9

ROE (Return on Equity) is divided by - profit per rupee of owner capital.

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Try “Like I'm 5™” for a picture-book version - not the grown-up wording above.

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