Return on Equity After Tax (REAT) indicates how profitable the company is based upon the generation of revenue from shareholder equity. Assess this over time and look for increasing or declining trends. Should there be changes in this, assess revenue or costs trends. If these are consistent, and returns are still changing, assess the total amounts of equity for the business over the same period. Has this changed disproportionately to revenue / cost changes? Finally, the ROE, if all other areas are consistent, could indicate a greater reliance on debt financing over time. Please see notes on Gearing too (detailed below).