Net profit ÷ shareholders' equity: how hard the owners' money works. Above ~15% is strong; buybacks can inflate it by shrinking equity.
How to read it
15%+ sustained across years marks a quality operator; compare within the sector. Pair with debt: leverage manufactures ROE.
Limits
Buybacks and heavy debt shrink equity and inflate ROE without improving the business.
Related terms
See it on a ScorecardAll terms
Definitions describe how Easy Sahm computes and reads each figure. Analysis, not financial advice.