Return on Equity (ROE)

Profitability

What is Return on Equity (ROE)?

Net income divided by shareholders' equity, expressed as a percentage. Measures how efficiently a company uses shareholder capital to generate profit.

Why Return on Equity (ROE) matters

A key profitability metric for evaluating management effectiveness. Central to the Residual Income valuation model.

Where this appears in StockFind

Stock Screener

Filter US-listed stocks by the numbers you actually use — P/E, ROE, size, and sector.

Plain-Language Insights

Every metric has a tooltip. A short note on what the ratio may indicate, sitting right next to the number.

Related terms in Profitability

EBITDA Gross Margin Net Margin Operating Margin Return on Assets (ROA)

Definitions are provided for educational and informational purposes only and are not investment advice. Consult a qualified financial advisor before making investment decisions.