Difference between - RoI, RoCE, RoE, RoNW

Biker

Active Member
#1
I would be grateful if anyone can explain the difference (not just theoretical definition or formula) between Return on investment, return on capital employed, return on equity and return on networth.

Of course I have googled about them, but did not found anywhere explaining how all these are related with each other and difference between them.
 

travi

Well-Known Member
#2
I would be grateful if anyone can explain the difference (not just theoretical definition or formula) between Return on investment, return on capital employed, return on equity and return on networth.

Of course I have googled about them, but did not found anywhere explaining how all these are related with each other and difference between them.
What part of the googling did you not get an explanation for ?
AFAIK, RoE and RoNW in industry measure are used interchangeably bcos its the total worth of all asset classes.
 

Biker

Active Member
#3
What part of the googling did you not get an explanation for ?
AFAIK, RoE and RoNW in industry measure are used interchangeably bcos its the total worth of all asset classes.
Its seems different websites loosely define the ratios and at times use the terms interchangeably. :confused:

So want to know how are these inter-related in simple english.