RETURN ON EQUITY or NET WORTH (ROE):
Online Return on Equity Ratio Calculator
The Return on Equity (ROE) of a company measures the ability of the management of the company to generate adequate returns for the capital invested by the owners of a company. Generally, a return of 10% would be desirable to provide dividends to owners and have funds for future growth of the company
The formula:
Return on Equity or Net Worth = (Net Profit / Net Worth or Owners Equity) x 100
Net Worth or Owners Equity = Total Assets (minus) Total Liability