Learn Stock Market Trading from the Best Tutors
Affordable fees 1-1 or Group class Flexible Timings Verified Tutors Search in
Asked by Franziska Last Modified
Answer 
Khalid
Professional Stocks and Forex trader with 4 years of experience.
A stock's Return on Equity (ROE) is a financial metric indicating the profitability of a company in relation to its shareholders' equity. It is calculated by dividing the net income by the average shareholders' equity. The formula for ROE is:
\[ ROE = \frac{\text{Net Income}}{\text{Average Shareholders' Equity}} \]
ROE provides insights into how efficiently a company utilizes equity capital to generate profits, and a higher ROE is generally considered favorable.
read less
Related Questions
Now ask question in any of the 1000+ Categories, and get Answers from Tutors and Trainers on UrbanPro.com
Ask a QuestionRelated Lessons
Looking for Stock Market Trading Classes?
Learn from the Best Tutors on UrbanPro
Are you a Tutor or Training Institute?
Join UrbanPro Today to find students near youThe best tutors for Stock Market Trading Classes are on UrbanPro
The best Tutors for Stock Market Trading Classes are on UrbanPro
31
