Is ROE and RoNW the same?

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.