this ratio shows how much income is generated by equity of the company. it is a great contributor towards profitability of a company. return on equity is calculated as follows:

Return on asset= profit margin × asset turnover

Return on equity= return on asset × equity multiplier

so, return on equity is more comprehensive

Return on equity is influenced by profits and not from dividends.

return on capital employed (ROCE) is net income/(debt&equity) whereas return on equity is income/equity (without debt).

Return on equity is the rate of returns you earned on your equity investments

Return on net worth is the rate at which your entire property is growing (Your net worth is the sum of all your assets - all your liabilities)