Question: Return on Equity Ratio Return on Equity Ratio is a profitability ratio that measures the ability of a company to generate profits from the shareholder's

Return on Equity Ratio Return on Equity Ratio is a profitability ratio that measures the ability of a company to generate profits from the shareholder's investments. This is an important measurement for potential investors in order for them to see how efficiently the company uses the investment money to generate net income. The investment made into the company is Rs6,000,000. The formula to calculate ROE ratio is: Neemocnl t Retunr no Eqiuty Raito = Shaerhalo 's Eqiuty Tolat Reneveu - Tolat Exnepess = 6,000,000 (Rs. 7.00 x Qnauitty) - (Vaelbair Cost + iFdex Cost) = 6,000,000

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