Equity Shares = Equity Capital / Face Value per Share For example, if a company generates ₹5,00,000 from shares with a face value of ₹10, the calculation is 5,00,000/10, yielding 50,000 equity shares. This metric signifies the total ownership units issued by the company.
The formula to calculate the return on equity (ROE) ratio divides a company's net income by the average balance of its book value of equity (BVE), i.e. the beginning and ending total shareholders' equity balance.