LCM of two numbers

Return on Equity given Net Income Calculator

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Return on Equity (DuPont Model) Important Formulas of Business Business Metrics Financial Ratios More >>

✖Net income is a company's total earnings.ⓘ Net Income [NI]			+10% -10%
✖Total Equity is the net value of the business left to its owners after the business has paid all liabilities.ⓘ Total Equity [TE]			+10% -10%

✖Return on Equity (ROE) is a measure of profitability that calculates how many dollars of profit a company generates with each dollar of shareholders' equity.ⓘ Return on Equity given Net Income [ROE]

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Return on Equity given Net Income Solution

STEP 0: Pre-Calculation Summary

Formula Used

Return on Equity = Net Income/Total Equity
ROE = NI/TE
This formula uses 3 Variables

Variables Used

Return on Equity - Return on Equity (ROE) is a measure of profitability that calculates how many dollars of profit a company generates with each dollar of shareholders' equity.
Net Income - Net income is a company's total earnings.
Total Equity - Total Equity is the net value of the business left to its owners after the business has paid all liabilities.

STEP 1: Convert Input(s) to Base Unit

Net Income: 200000 --> No Conversion Required
Total Equity: 10 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

ROE = NI/TE --> 200000/10

Evaluating ... ...

ROE = 20000

STEP 3: Convert Result to Output's Unit

20000 --> No Conversion Required

FINAL ANSWER

20000 <-- Return on Equity

(Calculation completed in 00.020 seconds)

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< Return on Equity (DuPont Model) Calculators

Return on Equity given Operating Profit

LaTeX Go Return on Equity = (Operating Profit Margin*Asset Turnover)-(Interest Expense Rate*Equity Multiplier*Tax Retention)

Return on Equity given Net Income

LaTeX Go Return on Equity = Net Income/Total Equity

Return on Equity given Net Income Formula

LaTeX Go

Return on Equity = Net Income/Total Equity
ROE = NI/TE

How to Calculate Return on Equity given Net Income?

Return on Equity given Net Income calculator uses Return on Equity = Net Income/Total Equity to calculate the Return on Equity, Return on Equity given Net Income can be defined as a measure of financial performance calculated by dividing net income by shareholders' equity. Return on Equity is denoted by ROE symbol.

How to calculate Return on Equity given Net Income using this online calculator? To use this online calculator for Return on Equity given Net Income, enter Net Income (NI) & Total Equity (TE) and hit the calculate button. Here is how the Return on Equity given Net Income calculation can be explained with given input values -> 20000 = 200000/10.

FAQ

What is Return on Equity given Net Income?

Return on Equity given Net Income can be defined as a measure of financial performance calculated by dividing net income by shareholders' equity and is represented as ROE = NI/TE or Return on Equity = Net Income/Total Equity. Net income is a company's total earnings & Total Equity is the net value of the business left to its owners after the business has paid all liabilities.

How to calculate Return on Equity given Net Income?

Return on Equity given Net Income can be defined as a measure of financial performance calculated by dividing net income by shareholders' equity is calculated using Return on Equity = Net Income/Total Equity. To calculate Return on Equity given Net Income, you need Net Income (NI) & Total Equity (TE). With our tool, you need to enter the respective value for Net Income & Total Equity and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

How many ways are there to calculate Return on Equity?

In this formula, Return on Equity uses Net Income & Total Equity. We can use 1 other way(s) to calculate the same, which is/are as follows -

Return on Equity = (Operating Profit Margin*Asset Turnover)-(Interest Expense Rate*Equity Multiplier*Tax Retention)

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