Return on Equity

The Return on Equity, or ROE, measures how efficiently a company uses Shareholders’ Equity to generate profits. It is calculated as the Net Profit for the year, divided by Average Book Value, or Equity, for the period. This is measured on a 2 year historical basis and earnings are normalised.

Stockopedia explains ROE

This is defined as Income available to Common Shareholders (excluding Extraordinaries) divided by the Average Book Value over the period.

The DuPont formula is a common way to break down ROE into three important components. Essentially, ROE will equal the Net Margin multiplied by Asset Turnover multiplied by Financial Leverage.

Earnings are measured on a normalised basis.

Ranks: High to LowUnit: %Available in screenerAvailable as Table Column

The 5 highest ROE Stocks in the Market

TickerNameROEStockRank™
NAQ:SNAXStryve Foods51989.6828
NYQ:CLColgate-Palmolive Co31560.0081
NYQ:NRTNorth European Oil Royalty Trust7615.3986
BIT:SOFSoftlab SpA7345.7175
NYQ:BPTBP Prudhoe Bay Royalty Trust6027.9279