https://www.123articleonline.com/rss/author/301489/investya-dnyaArticles written by investya dnya from 123ArticleOnline.comen-usCopyright (c) 123ArticleOnline.com All rights reserved. https://www.123articleonline.com/articles/1223925/how-do-fundamental-analysis-on-stocks-basics-for-beginners This ratio plays an important role in smart investing. With the help of this ratio, you can check the efficiency and capability of the company in making the huge profits and revenues. You can easily calculate the return on equity ratio. Return On Equity: Net Income/ Shareholders Equity.