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ROE (return on equity)

ROE measures how much profit a company generates for every euro put in by its shareholders. A high, sustained ROE points to a business that reinvests successfully, but it should be read alongside leverage: debt can inflate ROE without improving the underlying business at all, because it shrinks the equity sitting in the denominator.

Formula

ROE = beneficio neto ÷ fondos propios

See it on real data

Celsmar computes this from the accounts companies file with their regulator, and shows which line every figure comes from. Free to start, no card.

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Definition for informational purposes. It is not financial advice nor a recommendation to buy or sell.