Return on Equity Calculator
Calculate ROE (Return on Equity) by dividing net income by shareholders' equity. A key measure of profitability relative to equity.
How to Use the ROE Calculator
- Enter the company's net income.
- Enter total shareholders' equity.
- Click Calculate to see the ROE percentage.
Référence rapide
| De | Vers |
|---|---|
| ROE < 10% | Below average |
| ROE 10–15% | Average |
| ROE 15–20% | Good |
| ROE > 20% | Excellent |
| S&P 500 avg. | ~15–18% |
Cas d'utilisation
- •Evaluating corporate profitability for investment decisions.
- •Comparing companies within the same industry.
- •Tracking a company's equity efficiency over time.
Formule
ROE = (Net Income / Shareholders' Equity) × 100%.
Questions fréquemment posées
What is a good ROE?
An ROE above 15–20% is generally considered strong, though it varies by industry.
Can ROE be negative?
Yes, if the company has a net loss, ROE will be negative, indicating poor performance.
Is it free?
Yes, all calculators are completely free.