Roe: Is a profitability ratio that measures

ROE is a profitability ratio that measures the ability of a firm to generate earnings from the equity of its shareholders. Return on equity ratio is a key indicator of the financial efficiency of the company and reveals how well it is utilising its capital to create profits. Return on Equity is a financial ratio that measures company's profitability by dividing net income by shareholders' equity. The difference between return on equity ( ROE ) and return on capital employed (ROCE) is that ROE measures net income divided by shareholders’ equity and ROCE measures EBIT (earnings before interest and taxes) divided by total assets minus current liabilities. Return on equity ( ROE ) is a financial ratio that compares the net income generated by investors' capital, indicating how efficiently the capital is utilized.