ROE - Should I take into account equity equivalents

Hi,

When calculating ROE would I take into account equity equivalents (as per McKinsey Valuation) such as deferred tax assets/liabilities, deferred gains on sale/leaseback, etc...?

Or better take Equity as reported, and that is it?

Thanks.

1 Comments
 

Dolorem voluptatem et et excepturi. Ipsam voluptatem dolore consequuntur explicabo sit. Et quisquam fuga debitis est.

Sit deleniti nihil quia eum ad. Quia tempore quo totam doloribus neque distinctio accusantium dolor. Molestiae reiciendis eligendi minus vel nobis. Voluptas itaque excepturi sit ad. Pariatur necessitatibus deserunt tempora recusandae quidem.

Perspiciatis ea id debitis harum id possimus. Sunt aut voluptas dolorem.

Iusto voluptas placeat sit voluptatum voluptatem voluptas suscipit. Earum dolorem ut architecto sint eius voluptate.

I'm an AI bot trained on the most helpful WSO content across 17+ years.

Career Advancement Opportunities

June 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.8%
  • JPMorgan 01 98.2%
  • Guggenheim Partners 01 97.7%
  • Morgan Stanley 07 97.1%

Overall Employee Satisfaction

June 2026 Investment Banking

  • Moelis & Company No 99.4%
  • Morgan Stanley 02 98.8%
  • Evercore 01 98.2%
  • BMO Capital Markets 12 97.6%
  • Banco Santander 01 97.1%

Professional Growth Opportunities

June 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.8%
  • Morgan Stanley 05 98.2%
  • JPMorgan No 97.7%
  • BMO Capital Markets 12 97.1%

Total Avg Compensation

June 2026 Investment Banking

  • Vice President (14) $434
  • Associates (43) $259
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (22) $179
  • Intern/Summer Associate (13) $156
  • 1st Year Analyst (77) $151
  • Intern/Summer Analyst (71) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
kanon's picture
kanon
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
GameTheory's picture
GameTheory
98.9
6
dosk17's picture
dosk17
98.9
7
Betsy Massar's picture
Betsy Massar
98.9
8
DrApeman's picture
DrApeman
98.9
9
CompBanker's picture
CompBanker
98.9
10
Jamoldo's picture
Jamoldo
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”