Woolworths CEO Brad Banducci was unable to provide senators with his company’s ‘return on equity.’ What precisely does this metric entail, and what insights can it offer into a company’s profitability?

In yesterday’s senate inquiry on supermarket pricing, Greens senator Nick McKim warned he might hold outgoing Woolworths CEO Brad Banducci in contempt for evading direct responses regarding the company’s profitability. Despite McKim’s repeated inquiries about Woolworths’ return on equity, Banducci contended that another profitability metric, return on investment, was more pertinent to discuss.