ROE calculator
A net profit of Rs 1,200 crore on average equity of Rs 8,000 crore is an ROE of 15.00%. Enter figures from a company's annual report in the same units.
Results update as you type. Nothing you enter is stored.
How it works
ROE measures profit earned on the money shareholders have in the business. Using the average of opening and closing equity is more accurate when equity changes a lot during the year. Use the same units (crore or lakh) for every input.
Formula
ROE = net profit / average shareholders' equity x 100
Frequently asked questions
How is ROE calculated?
Net profit divided by shareholders' equity, times 100; analysts often use average equity.
Where do I find the numbers?
In the company's annual report: net profit in the profit and loss statement, equity in the balance sheet.
Can debt inflate ROE?
Yes; high borrowing raises ROE on a smaller equity base, so look at debt too.
Related
This tool is for information only and is not investment, tax or legal advice. Results depend on the inputs and assumptions you enter; check important figures with the official source or a qualified professional.