Investors seeking to analyze how executive management is performing and how much a company is earning relative to book value turn to a profitability ratio known as return on equity. From an ...

To calculate ROE, divide a company's net annual income by its shareholders' equity. Multiply the result by 100 to get a percentage. One way to obtain further insight into ROE is to break it down ...

"Similarly, if Coke (ticker: KO) has a lower ROE than Pepsi (PEP), investors should ask Coke tough questions about how management can improve." To calculate ROE, all you need is a company's income ...

If you were to calculate their return on equity for the period using just the second quarter's $1.5 million number, ROE would appear lower than the company's actual performance. That's because ...

While some investors are already well versed in financial metrics (hat tip), this article is for those who would ...