DEFINITION of 'Return On Average Equity  ROAE'
An adjusted version of the return on equity (ROE) measure of company profitability, in which the denominator, shareholders' equity, is changed to average shareholders' equity. Typically, return on average equity refers to a company's performance over a fiscal year, so the averageequity denominator is usually computed as the sum of the equity value at the beginning and end of the year, divided by two.
INVESTOPEDIA EXPLAINS 'Return On Average Equity  ROAE'
A measure of return on average equity can give a more accurate depiction of a company's corporate profitability, especially in instances where the value of the shareholders' equity has changed considerably during a fiscal year. In situations where the shareholders' equity does not change or changes by very little during a fiscal year, the ROE and ROAE numbers should be identical, or at least similar.

Return On Equity  ROE
The amount of net income returned as a percentage of shareholders ... 
Return On Capital Employed (ROCE)
A financial ratio that measures a company's profitability and ... 
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The amount of energy that has to be expended in order to produce ... 
Return On Assets  ROA
An indicator of how profitable a company is relative to its total ... 
Shareholders' Equity
A firm's total assets minus its total liabilities. Equivalently, ... 
Net Income  NI
1. A company's total earnings (or profit). Net income is calculated ...

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