What is my return on equity?

Return On Equity

Asset Utilisation measures

What is my return on equity? Asset utilisation ratios are used to measure the return on the labour and capital employed in your business. Thus, company efficiencies are measured using asset utilisation KPIs. 

Return on Equity

How do you measure the value generated by your company equity amounts? The ROE is a great way of doing this, and an indicator of company efficiency. In Jazoodle, we assess both the financial year as well as on an individual monthly basis. The number of employees is recorded within the Jazoodle application, and in the “Employee” section.

What does it mean?

The amount of profit earned in a period (without the effects of depreciations etc) in relation to total shareholders funds (Capital, Retained earnings, current earnings)

Check your return on equity with Jazoodle now.

How do we derive your ROE?

Definition used:

Your company’s ROE is calculated by the following:

total net profit

divided by

Total shareholder’s funds (Share capital, Retained Earnings and current earnings)

How Can I Improve my return on equity invested?

Your equity return can be improved in a number of ways, including:

  • Improve sales revenues from profitable product lines
  • Reduce internal process inefficiencies
  • Negotiate more favourable direct goods supplies
  • Reduce non productive overheads
  • Ensure your expenses are managed effectively
  • Manage your capital structure accordingly

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