Return on Equity (ROE)

Definition

ROE is a measure of how much profit a company is able to generate with the capital provided by shareholders. Calculated by dividing after-tax income for a specified time period. Return on Equity (ROE) (next 12 m) measures forecast net income over the next 12 months relative to shareholders' equity. Return on Equity (ROE) (5-year history) measures average net income relative to shareholders equity over the past 5 years.