Return on Equity

View how effectively a company generates net income from shareholders' equity.

The Return on Equity widget is a financial profitability metric that shows the return investors earn on their capital, expressed as a percentage. The widget shows a line chart in which the horizontal axis represents a time period or analytical dimension and the vertical axis represents the returned equity percentage. You can filter data based on these fields:

  • Period
  • Year
  • Ledger Analysis

Query logic

Return on Equity = Net Income / Shareholders' Equity

Net Income = Revenue – COGS – Operating Costs – Finance and Tax Costs

Shareholders' Equity = Share Capital and Premium + Retained Earnings

The Return on Equity widget retrieves account balances from SunSystems Cloud to calculate the ratio. Net income is determined by subtracting all cost categories from revenue. The result is divided by shareholders' equity. Account groupings are defined through the hierarchical relationship between Analysis Dimensions and Analysis Codes.