Trade Nivesh Equity Gain

How Do You Calculate ROE?
The formula for ROE is:

Return on Equity = Net Profit ÷ Shareholders' Equity

Or for First Derivatives:

9.2% = UK£13m ÷ UK£143m (Based on the trailing twelve months to February 2019.)

It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. It is all the money paid into the company from shareholders, plus any earnings retained. The easiest way to calculate shareholders' equity is to subtract the company's total liabilities from the total assets.