Financial Ratios
Return on Equity
Definition
What is Return on Equity?
Profit attributable to ordinary shareholders divided by average ordinary equity.
Example in practice
How This Looks in Practice
₦600 million profit on ₦4 billion equity gives 15% ROE.
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Related Terms
Financial Ratios
Gross Margin
Gross profit expressed as a percentage of revenue.
Financial RatiosOperating Margin
Operating profit expressed as a percentage of revenue.
Financial RatiosEBITDA Margin
EBITDA expressed as a percentage of revenue.
Equity ValuationEarnings Per Share
Net income attributable to ordinary shareholders divided by weighted average ordinary shares.