The financial affairs index which is shown just which uses the fund (capital) which enterprise supplies from the shareholder efficiently. Profitability of the enterprise which is the investment outlet for the shareholder investor, it is the scale which shows the operational efficiency of investment capital, it is the duty for the manager, it becomes the scale which shows ability and the responsibility that "it gains".

Basic calculation method becomes formula below.

ROE =
This term Sumitosi benefit
Capital stock
×100

Capital stock of denominator is used usually average capital stock (average of front-end capital stock and term-end capital stock) during period.

If the numerical value of ROE is high basically, the fact that efficiency of management is good is shown, but the loan (borrowed capital) being many, because the numerical value of ROE becomes high, when the company and the little company whose capital stock is many are compared, note becomes necessary. Just which uses the total liabilities and net worth which include the loan efficiently, there is ROA asthe index whichis shown.