PLAIN-LANGUAGE DEFINITION

Measures the return generated on shareholders' invested capital. Formula: Net Income ÷ Total Equity × 100. High ROE can indicate strong profitability relative to investment, but very high ROE with high debt warrants caution.

What to check

Confirm the numerator, denominator, reporting window, and whether the comparison is meaningful.

Where this connects to Impresa

You may encounter this concept when reviewing Financial Health. Start with the underlying inputs and check the applicable reporting period before interpreting the result.

Read the Financial Health guide
A NOTE ON INTERPRETATION

Definitions here explain the concept. Accounting treatments, formulas, and industry comparisons may vary. Use your own records and qualified advice for material decisions.

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