Many investors are still learning about the various metrics that can be useful when analysing a stock. This article ...

Novanta (NASDAQ:NOVT) has had a great run on the share market with its stock up by a significant 15% over the last three months. Given that stock prices are usually aligned with a company's financial ...

I recently worked with a client who was asset-rich but cash-flow poor, and their situation perfectly illustrates a dangerous ...

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 ...

Multiply Johnson & Johnson's net profit margin by its asset turnover rate to calculate its 2020 return on assets. The company's net profit margin of 17.8% times its asset turnover rate of 50% ...

Return on equity is a financial ratio that shows how well a company is managing the capital that shareholders have invested in it. To calculate ROE, one would divide net income by shareholder equity.

ROE is one of the most important metrics for understanding a company's profitability. Learn what it is, what it means, and how to calculate it.

When evaluating a company, consider other profitability ratios, such as return on equity and return on assets alongside ROCE to get a fuller picture of the company’s financial efficiency.

A higher ROE indicates that the company is utilizing its shareholders’ equity more efficiently to generate profits. In this article, we will discuss how to calculate ROE and its importance in ...

3. Calculate Return on Equity: Divide Net Income by Average Shareholders’ Equity using the formula mentioned above. Interpreting Return on Equity Once calculated, it’s essential to know how to analyze ...