while calculating return on equity under equity method and full consolidation method , i understand that net income would be the same in the numerator but in denominator my doubt is in full consolidation method, do we have to substract minority interest from equity? because we have substracted minority income from total income… and if so then return on equity in both the cases would be same right?
Non-controlling interests in consolidated subsidiaries are presented on the consolidated balance sheet as a separate component of stockholders’ equity. So, being a part of the Stockholder’s equity, it need not be subtracted when calculating ROE. The denominator would be Total Equity, which includes the minority component.