What the owners' money earns.
ROE = Beneficio ÷ Fondos propios
What each letter means
- B: Net profit
- FP: Equity
An example
With B = €20,000, FP = €100,000: ROE = 20%.
What the owners' money earns.
With B = €20,000, FP = €100,000: ROE = 20%.