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Yes, ROE (Return on Equity) and RoNW (Return on Net Worth) essentially represent the same ratio, indicating how efficiently a company generates profit from shareholders’ funds.
ROE=(Net Profit / Shareholders’ Equity) × 100
RoNW = (Net Profit / Net Worth) × 100
In most cases, Shareholders’ Equity and Net Worth mean the same — Share Capital + Reserves & Surplus – Accumulated Losses. The difference is mainly in terminology: ROE is used globally, while RoNW is more common in Indian financial reporting and SEBI/IPO documents.
Except for rare cases where Net Worth excludes certain reserves or expenses, ROE and RoNW are used interchangeably.
