ROE stands for //''Return On Equity''//. The ROE can be calculated as:

$\LARGE \text{ROE} =  \frac {NI}{S} \cdot \frac{S}{TA} \cdot \frac{TA}{EQ}$

Where:
$\Large TA$ = Total Assets (which is debt + equity)
$\Large EQ$ = Total Equity
$\Large S$ = Sales
$\Large NI$ = Net Income

And:
* $\LARGE \frac {NI}{S}$ => Profitability

* $\LARGE \frac{S}{TA}$ => Asset turnover

* $\LARGE \frac{TA}{EQ}$ => Leverage

bag
finance_public
created
Sat, 05 Feb 2011 18:10:12 GMT
creator
dirkjan
modified
Sat, 05 Feb 2011 18:10:12 GMT
modifier
dirkjan
tags
M12
Term
creator
dirkjan