Management accounting presented inunderstandablehumanaccessiblelanguage.

Management accounting presented inhumanaccessiblelanguage.

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Financial and other indicators

Information section

Return on equity (ROE)

Return on equity (ROE)

Shows the profit of the enterprise (in percentage from owner’s equity, %) for the reporting period.

 

It is calculated as a correlation of net profit for the year to average owner’s equity (or average owner’s equity for any period (month, quarter, six months etc). Then the net profit is considered for the same period)

Average owner’s equity for a period is calculated by formula:

Where can we get the figures?

Net profit can be found in the TOTAL line of  Profit and loss account
Owner’s equity can be found in the TOTAL line (1.5), Section 1 “Owner’s equity”, Liabilities, Balance sheet.

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