Then all you need to do is divide net income by the shareholders' equity you just calculated. This is the company's return on equity. "Generally, we prefer ... return on capital, for companies ...

Reviewed by Gordon Scott Fact checked by Yarilet Perez Return on Equity (ROE) vs. Return on Capital (ROC): An Overview Return ...

Return on equity (ROE) is a financial ratio that tells you how much net income a company generates per dollar of shareholders' equity, which is essentially the amount of invested capital from ...