Return on equity: the meaning
How much profit the company makes on its owners' money.
Also called ROE. A very high return can also come from low equity, so read it together with solvency.
How to read it
Above 10 percent is good, above 15 strong. Negative means a loss.
On Nummo you find this figure in the Figures tab of every company that filed annual accounts, over the years. In the tables, a small card gives this explanation in short.
How to calculate it
profit ÷ equity (in belgian annual accounts: 9904 ÷ 10/15)
The item numbers follow the official format of Belgian annual accounts, which builds on the European Accounting Directive.
More: Return on equity (ROE): formula and example →
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