Dividing $6.3 billion (income) by $9.3 billion (equity) yields a rate of return on equity of 68%. That percentage means that Home Depot generated $0.68 of profit for every $1 that management had ...

Learn about Return on Common Equity (ROCE), its importance, calculation formula, and how it measures a company's profitability for common shareholders.

Return on equity is primarily a means of gauging the money-making power of a business. By comparing the three pillars of corporate management — profitability, asset management, and financial ...

Return on equity formula . To calculate ROE, divide a company's net annual income by its shareholders' equity. Multiply the result by 100 to get a percentage. Insider ...

The resulting return on equity of Meta is 21.41%, according to the formula in B4, =B2/B3. Then, enter =-108063000 into cell C2 and =5047218000 into cell C3 for X Corp.

return on equity = (500,000 / 2,250,000) × 100 = 22% What You Need to Know Although the basic formula for ROE is very simple, there are occasional variations—so investors should check carefully ...