ROE (return on equity)
ROE is net profit divided by shareholders' equity (the owners' money in the business), shown as a percentage. It shows how much profit the company makes on the money its shareholders have put in and left in the business.
Example: net profit of ₹20 crore on equity of ₹100 crore is an ROE of 20%.
- A steady ROE over several years says more than one good year.
- Borrowing reduces equity relative to the business, so a company with high debt can show a high ROE. Check debt-to-equity alongside.
- Banks and financial companies are usually judged on ROE; for other companies, look at ROCE too.
Where to see it on NSE Scanner
Stock pages show ROE among the key figures, and comparison pages compare it for two companies.
P/E ratio (price to earnings) · EPS (earnings per share) · ROCE (return on capital employed) · Promoter pledge · Bulk deals and block deals