What is the ROE Calculator?

The Return on Equity Calculator is a financial tool used to measure a company’s profitability relative to shareholders’ equity. It shows how efficiently a business uses investors’ capital to generate profits. This calculator is useful for investors, analysts, and business owners to evaluate financial performance and compare returns across companies or periods.

How to Use:

1. Enter Net Income (PKR): Input the company’s net profit after taxes for the period.
2. Enter Shareholders’ Equity (PKR): Input the total equity invested by shareholders.
3. Click “Calculate”: The tool divides net income by equity and converts it to a percentage.
4. Review Result: The output displays the Return on Equity value along with a status indicator (Excellent, Good, Low, Negative) to interpret profitability and investment efficiency.