자기자본이익률 (ROE) (jagijabon iikryul)

Net profit ÷ shareholders' equity: how much profit the company makes on the owners' money.

ROE is net profit divided by shareholders' equity (net assets). An ROE of 10% means the company earned ₩10 for every ₩100 of the owners' capital in the business over the year.

Higher is usually better, but heavy borrowing can raise ROE too, so it is worth looking at debt alongside it. Raising ROE is one of the goals of Korea's Value-up programme.

Also called: ROE · return on equity