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Return on Equity

Also known as ROE, return on equity is computed by taking net profit (after taxes) and dividing it by the total equity. Consider a firm with $3000 in net profit after taxes, and $12,500 in equity. It would have a ROE of $3,000/$12,500 or 24 percent. Return on Equity is one of the ratios used in the Dupont Model of financial performance. 

All the Taxes Your Business Must Pay

Just like an individual, businesses must pay several different kinds of taxes, some easier to understand than others. Taxes for businesses come in several varieties: federal, state, and local.
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