ROE (Return on Shareholders' Equity) refers to the relationship between company profits and shareholders' equity. Shareholders' equity refers to the company's funds belonging to shareholders, which can be regarded as shareholders' investment in the company. The return on net assets tells us how much profit the company has created for shareholders relative to the capital invested by shareholders. The higher the return on net assets, the better the return the company brings to shareholders.

For example, a company's return on net assets is 20%, which means that for every 1 unit of shareholders' equity invested, the company can generate 0.2 unit of profit.

ROIC (Return on Investment Capital) refers to the relationship between company profits and investment capital. Investment capital refers to the sum of the company's owner's equity and debt, indicating the total amount of funds obtained by the company from various sources. ROIC tells us how efficient the company is in using investment capital. It considers the investment of debt and shareholders' equity.

For example, a company's ROIC is 15%, which means that for every 1 unit of investment capital invested by the company, it can generate 0. 15 unit of profit.

In short, ROIC focuses on the return on shareholders' equity, while ROIC focuses on the return on investment capital. Both of them are important indicators to measure the relationship between the company's profitability and investment, and are used to evaluate the company's profitability and capital utilization efficiency.

It should be noted that ROIC and ROIC are only one of the financial indicators, and cannot determine the quality of a company alone. Other factors such as industry competitiveness, market prospect and management team need to be considered comprehensively.