How do you calculate Return on Equity?

im doing it on UPS, and i found on yahoo finance that it's 2.76%, but when i calculate it i end up with this:

Return on Equity: total assets – liabilities = shareholders equity
Shareholders equity average beginning ending year


Never seen that calculation before.
Most people look at Dividend yield which is Dividend/current share price.
There are lots of other calculations but you need to state exactly what you are calculating as Return on Equity is too genera


Never seen that calculation before.
Most people look at Dividend yield which is Dividend/current share price.
There are lots of other calculations but you need to state exactly what you are calculating as Return on Equity is too genera

How do I calculate return on equity using CAPM?

Re = Risk-free rate + (Market Risk - Risk Free Rate)*b

I know how to calculate beta using historical pricing, but how do I calculate the market rate and the risk free rate? Any help would be gladly appreciated. thanks!


In the previous step, the cost of financing each component of the capital structure of Peter's Shortline Rail Company was determined. In this step, the cost of financing each component is weighted according to its proportion of the firm's total capital

Business Calculations & Accounting : How to Calculate Return on Equity

Return on equity is calculated by taking the net income and dividing it by the shareholder's equity, or the total amount of money the ...

NPS still good for conservative investors

In the last two years of its existence, the National Pension System (NPS) has managed to attract only around 54,000 investors. The sole social security initiative for the sunset years of around 100 million workers of the informal sector, NPS has been struggling to attract investors even as criticism poured in for its poor performance.

Graphic By Yogesh Kumar/Mint

Last month, a parliamentary standing committee in its review of the Pension Fund Regulatory and Development Authority Bill, 2011, (PFRDA Bill, 2011) expressed concerns over the uneven and rather poor performance of NPS funds. The panel recommended that the PFRDA exercise stringent monitoring and strictly evaluate the performance to ensure stable returns.

calculate return on equity - Bookshelf


Equity Asset Valuation
464 pages
Equity Asset Valuation

Calculate return on equity and use it as an input to the residual income model to calculate SITI's value. 11. Foodsco Incorporated (FI), a leading ...

Forbes Forbes

This is a sort of baseline return on equity that a good company should beat. ... In this one, you calculate a stock's value as the discounted present value ...

How to Read a Financial Report, Wringing Vital Signs Out of the Numbers
201 pages
How to Read a Financial Report, Wringing Vital Signs Out of the Numbers

Dividing annual net income by stockholders' equity gives the return on equity ( ROE) ratio. The calculation for the company's ROE in this example is: $2642 ...

maria123: I will do cash flow analysis and calculate roe, roi, roa ...

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calculate return on equity - News


NPS still good for conservative investors
While the tracking error or difference of return with respect to the benchmark remained within a percentage point for many funds, SBI Pension Funds Pvt. Ltd showed a tracking error of 15.29 percentage points. To calculate the return of the benchmark we

The Latest Look At the Q-Ratio Confirms Stocks Are Still Massively Overvalued
This is because the long-term real return on corporate equity, according to the published data, is only 4.8%, while the long-term real return to investors is around 6.0%. Over the long-term and in equilibrium, the two must be the same.

A Valuation Tool That Is Easily Calculated Yet Too Often Overlooked
Sustainable growth, the amount of growth a company can attain for the foreseeable future, can be calculated by multiplying return on equity (ROE) by retention of earnings (b): ROE is calculated by dividing Net Income by Equity.

RLPC-Rising European bank funding costs threaten M&A
Rising dollar funding costs are also forcing banks to take a tougher view of client relationships and re-examine the return on equity (ROE) models they use to calculate what they earn from lending. Dollar funding costs have trebled after US mutual

Would you trade cheaper mortgage payments for a slice of your home's equity?
'Of course there's no such thing as a free lunch and in return for no interest payments Castle Trust will take 40 per cent of any capital growth – it's clearly important that as with any shared equity arrangement the borrower fully understands how the

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