RETURN ON EQUITY (ROE) Formula Description: Return on equity (ROE) is net profit divided by total equity. What Does Return On Equity Tell You? Return on equity tells you how effectively a company is using the dollars invested in it by stockholders. According to Forbe's Magazine, ROE is the most often quoted single statistic when describing a firm's performance. It is also one of the statistics considered to be most useful by stockholders. Typical Range: Because of the huge swing in debt positions the range of ROE is very wide. Here are some examples of figures from 2008: Coca Cola = 28.3% Intel = 13.5% Caterpillar = 58.4% AT&T = 13.6% Given the above information, what weight out of 40 would you give to this measure? (Do not enter the % symbol)