Investors seeking to analyze how executive management is performing and how much a company is earning relative to book value turn to a profitability ratio known as return on equity. From an ...

To calculate ROE, divide a company's net annual income by its shareholders' equity. Multiply the result by 100 to get a percentage. One way to obtain further insight into ROE is to break it down ...

The author and editors take ultimate responsibility for the content. Return on equity is an easy-to-calculate valuation and growth metric for a publicly traded company. It can be a powerful weapon ...

"Similarly, if Coke (ticker: KO) has a lower ROE than Pepsi (PEP), investors should ask Coke tough questions about how management can improve." To calculate ROE, all you need is a company's income ...