Return on Equity ROE
How much profit a company generates for each dollar of shareholders' equity, shown as a percentage.
What it is
Return on equity measures the profit a company earns relative to the money shareholders have invested in it, including retained earnings. It answers how efficiently management turns shareholder capital into net income. A consistently high ROE often signals a strong, well-run business, though the figure must be read with care.
Why it matters
ROE is a core gauge of how well a company compounds shareholder money, and it links profitability, asset use, and leverage. The key pitfall is that debt inflates ROE: a company can boost ROE simply by borrowing more, so a high ROE paired with high leverage is less impressive than one earned with little debt. Share buybacks also shrink equity and lift ROE, so it pays to check what is driving the number.
How it's calculated
Divide net income by shareholders' equity (often the average of beginning and ending equity for the period), expressed as a percentage.
How Quintarthai uses it
ROE is shown in the Summary Key-metrics grid and in the profitability ratios on a company's deep-analysis page, and is a filterable metric in the Stock Screener.