What does return on equity mean?
Return on equity, or ROE, is net profit as a share of the shareholders' money in the business. That money is called equity or net worth.
Net worth is the share capital raised plus all the profit kept over the years. It is what would be left for shareholders if every debt were paid.
How is it worked out?
Divide a year's net profit by the shareholders' equity, often the average of the opening and closing figures. Multiply by 100.
Where do you find it in a filing?
Banks often report ROE with their results. Many other companies print it in a ratio table in the notes to the annual report.
Saksoft's FY26 annual report is one example. Its "Analysis of Ratios" note shows return on equity, with the profit and equity figures used.[S1]
What can move the number?
Higher profit raises ROE. So can more borrowing, or a buyback that shrinks equity, without the business itself earning more.
ROE also differs a lot across industries. A bank and a software firm are funded in very different ways, so the comparison is context only.