How To Calculate Return On Stockholders Equity. You will see the total of the stockholders’ equity section listed right before the total of liabilities and stockholders’ equity. Return on stockholders’ equity = net earnings/total.
Typically, this is the right side of the balance sheet and the bottom section. For example, if your net profits are 100,000 and the shareholders’ average equity is 62,500, your return on equity, is 1.6 or 160 percent. The higher the percentage, the more money is being returned to investors.