Etomate Technology LLP
BI & Analytics | Accounting & Outsourcing | Training & Skill Development | Recruitment & Placement

BI & Analytics » Profitability and Return » Return on Total Assets to Return on Equity

Return on equity (RoE) composition and analysis

Yet another unique analysis from Etomate, below is the much-haloed financial measure, Return on Equity or RoE, demystified and decomposed into its building blocks- return on total assets, benefit from non-interest bearing liabilities, benefit from financial leverage (debt and preferred stock) and adjustment on account of minority interest.


The ratios, analyses pertaining to Return on Equity and its constituents, represented in the below chart are based on information drawn from financials (e.g. financial statements comprising balance sheet, income statement or profit & loss account) of listed companies across the globe.