Return on equity

ROE is calculated by dividing a company's net income by its shareholder equity. The ratio shows how much profit a company is generating for each dollar of shareholder equity. Just as Mbappé's scoring efficiency is calculated by dividing the number of goals he scores by the number of shots he takes, ROE is calculated by dividing a company's net income by its shareholder equity.

For example, if a company has a net income of $1 million and shareholder equity of $10 million, its ROE would be 10% ($1 million divided by $10 million). This means that the company is generating a 10% return on each dollar of shareholder equity.

Similarly, Mbappé's scoring efficiency can be calculated by dividing the number of goals he has scored by the number of shots he has taken. For example, if Mbappé has scored 20 goals and taken 100 shots, his scoring efficiency would be 20% (20 divided by 100).

This means that Mbappé is able to score on average 20 goals for every 100 shots he takes. In summary, return on equity (ROE) is a financial ratio that measures a company's profitability in relation to its shareholder equity. Just as Mbappé's scoring efficiency is a measure of how effectively he is using his skills to score goals for his team.