Return on Equity
A profitability ratio that shows how much net income a company generates relative to shareholder equity.
Category
Applies to
Related sectors
Linked companies
Why it matters
Investor context
Formula
Calculation pattern
Sector context
Sectors where this term is common
Consumer Discretionary
Sectors
Automotive, luxury, travel, entertainment, and branded consumer businesses whose demand can move with household confidence and premium positioning.
Financial Services
Sectors
Banks, insurers, asset managers, exchanges, and payment businesses whose earnings power often reflects rates, credit, and market activity.
Technology
Sectors
Software, semiconductors, platforms, and digital infrastructure businesses that typically compound through scale and innovation cycles.
Issuer examples
Companies using this lens
AIA Group Limited
Companies
A pan-Asian life insurer with long-duration growth exposure through protection, savings, and retirement products.
HDFC Bank Limited
Companies
A leading private-sector Indian bank known for retail deposit strength, disciplined underwriting, and strong profitability metrics.
HSBC Holdings plc
Companies
A globally diversified banking group with major franchises in Asia, transaction banking, wealth management, and commercial finance.
JPMorgan Chase & Co.
Companies
A globally systemically important bank with leading franchises in consumer banking, investment banking, markets, and asset and wealth management.
Mitsubishi UFJ Financial Group, Inc.
Companies
Japan’s largest banking group, with scale across lending, securities, trust banking, and global institutional operations.
Royal Bank of Canada
Companies
Canada’s largest bank by market capitalization, with scale across personal banking, wealth management, insurance, and capital markets.
Market context
Markets where this concept shows up
Canada Equities
Markets
A developed market with strong financials, software champions, and meaningful exposure to commodity and mining leaders.
Eurozone Equities
Markets
A large continental market mix spanning luxury, pharmaceuticals, industrial exporters, and energy incumbents denominated primarily in euros.
Hong Kong Equities
Markets
A gateway market for Asia-focused capital, combining internet platforms, insurers, financial conglomerates, and China-linked liquidity flows.
India Equities
Markets
A fast-growing large-cap market driven by domestic consumption, bank formalization, industrial capex, and digital infrastructure growth.
Japan Equities
Markets
A major developed market with world-class exporters, industrial leaders, financial institutions, and globally relevant consumer brands.
United Kingdom Equities
Markets
A globally connected market centered on London, with strong representation in healthcare, energy, banking, and diversified resource producers.
United States Equities
Markets
The deepest public equity market in the world, led by large-cap listings, ETF liquidity, and dense institutional coverage across every major sector.
Benchmark context
Indices where the concept matters
BSE Sensex
Indices
A long-running Indian blue-chip benchmark that remains a widely cited shorthand for Indian equity sentiment.
CAC 40
Indices
A flagship eurozone benchmark with meaningful exposure to luxury, healthcare, industrial, and energy leaders.
FTSE 100
Indices
The main blue-chip benchmark for the UK market, with strong links to global macro, commodities, healthcare, and banking.
Hang Seng Index
Indices
Hong Kong’s headline benchmark for regional liquidity, financials, and internet-platform sentiment.
Nasdaq-100
Indices
A growth-oriented U.S. benchmark that concentrates mega-cap technology and internet platform exposure.
Nifty 50
Indices
India’s most watched benchmark for large-cap domestic growth, financial depth, and reform-driven earnings expectations.
Nikkei 225
Indices
Japan’s best-known equity benchmark, widely used as a shorthand for exporter sentiment and domestic market confidence.
S&P 500
Indices
The flagship benchmark for large-cap U.S. equities and the default reference index for broad American risk appetite.