Talk:Return on equity

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This is very confusing!!! Can someone please explain in simple english what ROE is and how to compare companies of the same industry based on ROE? Sirishar 11:14, 4 July 2007 (UTC)[reply]

Look up shareholders equity in the balance sheet in year A and year A+1. Average them. Divide Net income by this (average equity). Higher is better.--Gregalton 14:13, 4 July 2007 (UTC)[reply]

Is ROA = Return on assets? I suggest spelling it out adding a link. GilesW 12:23, 30 August 2007 (UTC)[reply]

• http://de.wikipedia.org/wiki/Eigenkapitalrendite
• Mit welcher Gewinnzahl 2007 wird da gerechnet?
• Jahresgewinn 2007?
• Vorsteuerjahresgewinn 2007?
• Nachsteuerjahresgewinn 2007?
• Monatsgewinn 2007?
• Quartalsgewinn 2007?
• Negativer Gewinn 2007?
• Eigenkapital gleich Grundkapital? ([1] PDF: "[PDF / 12 Seiten / 768 KB] Seite 7 Grundkapital")
• Wieso teilt man überhaupt Gewinn durch Eigenkapital?
• Ist das Eigenkapital/Grundkapital ein Teil des Gewinns? Subtraktion? Addition? —Preceding unsigned comment added by 193.40.193.11 (talk) 09:52, 25 April 2008 (UTC)[reply]

I think "after tax" (in ROE formula) is obsolete, as NET INCOME is always an after-tax measure. — Preceding unsigned comment added by 141.78.232.73 (talk) 08:22, 5 October 2012 (UTC)[reply]