ROE

Return on equity

One of the 61 measures in Stock Scorer, under Quality — How much of the revenue is really kept — and what did it take to earn it?

How it is worked out

Net income ÷ shareholders' equity × 100

Shareholders' equity is assets minus liabilities: the book value the owners have in the business. Borrowing money or buying back shares shrinks it and lifts this ratio without the business having improved.

How to read it

flattered by leverage and by buybacks, both of which shrink the denominator without improving the business. Read next to return on capital, which cannot be moved that way

Which figures it needs

Computed from 2 figures taken from the filing:

• net_income
• equity

The XBRL tags behind it

These are the element names looked for in a filing, in order. The first one a company reports is the one used, and the company page names which it was — so any figure here can be checked against the filing it came from.

• NetIncomeLoss
• ProfitLoss
• NetIncomeLossAvailableToCommonStockholdersBasic
• StockholdersEquity
• StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
• EquityAttributableToOwnersOfParent
• Equity

Whether it counts

This measure is not counted by default. It can be added to Quality on the dashboard, and it then takes its share of that dimension.