Stockholders' Equity Example. A company's shareholders' equity is fluid, often changing several times during a year due to actions taken by the company, which can affect one or more of the components.

So, based on the above formula, the ROE for Kroger is: 23% = US$2.2b ÷ US$9.4b (Based on the trailing twelve months to May 2022). The 'return' refers to a company's earnings over the last year.

While some investors are already well versed in financial metrics (hat tip), this article is for those who would ...

While some investors are already well versed in financial metrics (hat tip), this article is for those who would ...

Average shareholders' equity: ... Example of ROE. For example, according to Meta's SEC filings, its net income for 2023 was about $39.1 billion. Total shareholders' equity was about $153.2 billion.