Quality Factors

Return on Equity (ROE)

High Return on Equity (ROE) characterizes growth companies. It measures the company's profitability, i.e. how much net income it can generate on the money its shareholders invested.


ROE = Net Income Common Shareholders Equity

We don't remove extraordinary items from the net income. Transactions rarely meet the requirements to be presented as extraordinary items. For this reason, the concept of extraordinary items has been removed from GAAP (starting from Dec 15, 2015). For more information, click here.