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Return On Equity (Roe)- After Tax

calender iconUpdated on October 09, 2023
corporate finance and accounting
financial ratios

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Return on equity (ROE) after tax is a measure of a company’s profitability that is calculated by dividing the company’s net income after taxes by its shareholders’ equity.

The formula for return on equity (ROE) after tax is as follows:

Return on equity (ROE) after tax = Net income after taxes / Shareholders’ equity

Therefore, return on equity (ROE) after tax is a measure of a company’s ability to generate returns for its shareholders. It is a key performance indicator for many companies and is often used to compare companies with different size and industry structures.

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