Return on equity (ROE) is a financial ratio that measures the profitability and efficiency of a company's equity investment by comparing net income to shareholders' equity. ROE indicates how effectively a company generates profits from the shareholders' equity invested in the business and measures the return earned on each dollar of equity capital. The ROE formula is calculated by dividing net income by average shareholders' equity and is expressed as a percentage. ROE = (Net Income / Average Shareholders' Equity) * 100. A higher ROE signifies better profitability and efficiency, indicating that the company is effectively utilizing shareholders' funds to generate returns. ROE is a key performance indicator used by investors, analysts, and management to assess a company's financial health, profitability, and value creation capabilities relative to industry peers and benchmark indices. ROE analysis helps stakeholders evaluate management effectiveness, operational performance, capital allocation decisions, and competitive positioning, guiding