ROE (Return on Equity) ratio calculator is a finance tool to calculate the ratio between net income and average stockholder's equity of a company. It is an investment valuation indicator for the company to evaluate how much profit is gained from the stockholder's equity. Generally, a higher value of return on equity ratio may indicate that the company is earning more and lower value may indicate that the company is earning less from the stockholder's equity. The term return on equity abbreviated as ROE and sometimes called as return on capital.
Formula ROE (Return on Equity) = Net Income/Average Stockholder's Equity