# Return on Equity (ROE)

*Saving & Investing — Finicade finance glossary*

Net profit as a percentage of shareholders' equity — how efficiently a company turns owners' money into earnings. DuPont analysis breaks it into margin, asset turnover and leverage to see what's really driving it.

**Also known as:** return on equity

**Related terms:** [DuPont Analysis](https://finicade.com/glossary/dupont-analysis), [EPS (Earnings Per Share)](https://finicade.com/glossary/eps), [Cost of Equity](https://finicade.com/glossary/cost-of-equity)

**Taught in:** Charter Climb — DuPont Decomposition

Source: https://finicade.com/glossary/roe