Shareholder Equity - Image

What is Shareholder Equity – Meaning, Basics, Examples, & Interpretation

A more common term for shareholder equity is Net Worth. It is visible on the company’s Balance Sheet. This number highlights an approximate liquidation value, net of liabilities, of a company. It is the capital receivable at the hands of the shareholders after the company’s assets are sold and all debts are repaid. [For a…

Return on Equity (ROE) - Image

Return on Equity (ROE) – Understanding & Interpretation of The Ratio

What is Return on Equity (ROE)? It is a financial ratio that is calculated by dividing net profit (PAT) by the total shareholder’s funds (Net Worth – NW) of a company. ROE is the measure of the company’s efficiency that highlights how well the company is using shareholder capital to yield net profits. A list…