what is return on equity roe 
return on equity roe is a measure of a company s financial performance it is calculated by dividing net income by shareholders equity because shareholders equity is equal to a company s assets minus its debt roe is a way of showing a company s return on net assets return on equity is considered a gauge of a corporation s profitability and how efficiently it generates those profits the higher the roe the more efficient a company s management is at generating income and growth from its equity financing 1investopedia zoe hansen