Return On Equity (Roe)- After Tax

Return on equity (ROE) after tax is a measure of a company’s profitability that is calculated by dividing the company’s net income after taxes by its shareholders’ equity.

The formula for return on equity (ROE) after tax is as follows:

Return on equity (ROE) after tax = Net income after taxes / Shareholders’ equity

Therefore, return on equity (ROE) after tax is a measure of a company’s ability to generate returns for its shareholders. It is a key performance indicator for many companies and is often used to compare companies with different size and industry structures.