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