Quality Factors

Return on Equity (ROE)

High Return on Equity (ROE) characterize growth companies. It measures the company's profitable, i.e. how much net income it is able to generate on the money its shareholders invested.


ROE = Net Income Common Shareholders Equity

Please note that we don't remove the extrordinary items from the net income. It's very rare that transactions meet the requirements to be presented as an extrordinary item. For this reason, the concept extrordinary items has been removed from GAAP (starting from Dec 15, 2015). For more information, click here.