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Return on Equity when Net Income is given Solution

STEP 0: Pre-Calculation Summary
Formula Used
return_on_equity = Net Income/Total Equity
ROE = NI/TE
This formula uses 2 Variables
Variables Used
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 00.001 seconds)

6 Other formulas that you can solve using the same Inputs

Diluted Earnings per Share
diluted_earnings_per_share = Net Income/(Average Shares+Other Convertible Securities) Go
Retention Ratio
retention_ratio = (Net Income-Dividend)/Net Income Go
Dividend Payout Ratio
dividend_payout_ratio = Total Dividends/Net Income Go
Capitalized Value Using Profit Based Valuation
capitalized_value = Net Income*Years purchase Go
Business Net Profit Margin
net_profit_margin = Net Income/Sales*100 Go
Net Profit Margin
net_profit_margin = Net Income/Sales*100 Go

1 Other formulas that calculate the same Output

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

Return on Equity when Net Income is given Formula

return_on_equity = Net Income/Total Equity
ROE = NI/TE

How to Calculate Return on Equity when Net Income is given?

Return on Equity when Net Income is given calculator uses return_on_equity = Net Income/Total Equity to calculate the Return on Equity, Return on Equity when Net Income is given can be defined as a measure of profitability that calculates how many dollars of profit a company generates with each dollar of shareholders' equity when net income is given. Return on Equity and is denoted by ROE symbol.

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

FAQ

What is Return on Equity when Net Income is given?
Return on Equity when Net Income is given can be defined as a measure of profitability that calculates how many dollars of profit a company generates with each dollar of shareholders' equity when net income is given and is represented as ROE = NI/TE or return_on_equity = Net Income/Total Equity. Net income is a company's total earnings and 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 when Net Income is given?
Return on Equity when Net Income is given can be defined as a measure of profitability that calculates how many dollars of profit a company generates with each dollar of shareholders' equity when net income is given is calculated using return_on_equity = Net Income/Total Equity. To calculate Return on Equity when Net Income is given, you need Net Income (NI) and Total Equity (TE). With our tool, you need to enter the respective value for Net Income and 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 and 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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