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Return on Equity given Net Income Formula

GoReturn on Equity given Operating Profit Formula

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Return on Equity (ROE) is a measure of profitability that calculates how many dollars of profit a company generates with each dollar of shareholders' equity. Check FAQs

ROE = \frac{NI}{TE}

ROE - Return on Equity?NI - Net Income?TE - Total Equity?

Return on Equity given Net Income Example

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Here is how the Return on Equity given Net Income equation looks like with Values.

Here is how the Return on Equity given Net Income equation looks like with Units.

Here is how the Return on Equity given Net Income equation looks like.

20000 = \frac{200000}{10}

20000 = \frac{200000}{10}

20000 = \frac{200000}{10}

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Return on Equity given Net Income Solution

Follow our step by step solution on how to calculate Return on Equity given Net Income?

FIRST Step Consider the formula

ROE = \frac{NI}{TE}

Next Step Substitute values of Variables

∴

ROE = \frac{200000}{10}

Next Step Prepare to Evaluate

∴

ROE = \frac{200000}{10}

LAST Step Evaluate

∴

ROE = 20000

Return on Equity given Net Income Formula Elements

Variables

Return on Equity

Return on Equity (ROE) is a measure of profitability that calculates how many dollars of profit a company generates with each dollar of shareholders' equity.

Symbol: ROE

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Return on Equity

Net Income

Net income is a company's total earnings.

Symbol: NI

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Net Income

Total Equity

Total Equity is the net value of the business left to its owners after the business has paid all liabilities.

Symbol: TE

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Total Equity

Other Formulas to find Return on Equity

Go Return on Equity given Operating Profit

ROE = (OPM \cdot ATO) - (IER \cdot EM \cdot TR)

How to Evaluate Return on Equity given Net Income?

Return on Equity given Net Income evaluator uses Return on Equity = Net Income/Total Equity to evaluate the Return on Equity, Return on Equity given Net Income can be defined as a measure of financial performance calculated by dividing net income by shareholders' equity. Return on Equity is denoted by ROE symbol.

How to evaluate Return on Equity given Net Income using this online evaluator? To use this online evaluator for Return on Equity given Net Income, enter Net Income (NI) & Total Equity (TE) and hit the calculate button.

FAQs on Return on Equity given Net Income

What is the formula to find Return on Equity given Net Income?

The formula of Return on Equity given Net Income is expressed as Return on Equity = Net Income/Total Equity. Here is an example- 20000 = 200000/10.

How to calculate Return on Equity given Net Income?

With Net Income (NI) & Total Equity (TE) we can find Return on Equity given Net Income using the formula - Return on Equity = Net Income/Total Equity.

What are the other ways to Calculate Return on Equity?

Here are the different ways to Calculate Return on Equity-

Return on Equity=(Operating Profit Margin*Asset Turnover)-(Interest Expense Rate*Equity Multiplier*Tax Retention)

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Return on Equity given Net Income Formula

​GoReturn on Equity given Operating Profit Formula

Return on Equity given Net Income Example

Return on Equity given Net Income Solution

Return on Equity given Net Income Formula Elements

Other Formulas to find Return on Equity

How to Evaluate Return on Equity given Net Income?

FAQs on Return on Equity given Net Income

Variable Name

GoReturn on Equity given Operating Profit Formula