Return on Equity Calculator — Calculate ROE for Your Business

Return on Equity Calculator

Calculate Return on Equity (ROE) to measure how effectively a company generates profits from shareholders’ equity. Analyze financial performance and investment potential.

Step 1: Financial Inputs

ROE Formula

Return on Equity = (Net Income / Shareholders’ Equity) × 100%. ROE measures how efficiently management uses equity to generate profits.

Step 2: Comparison & Settings

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ROE Interpretation

ROE > 15%: Excellent
ROE 10-15%: Good
ROE 5-10%: Average
ROE < 5%: Poor
Compare with industry averages for better analysis.

Return on Equity Analysis

Summary
DuPont Analysis
Industry Comparison

Return on Equity (ROE)

20.0%
Excellent performance
Net Income
$500,000
Shareholders’ Equity
$2,500,000
Industry Average
15.0%
Year-over-Year Change
+2.0%

DuPont Analysis Breakdown

Component Value Calculation Impact on ROE Recommendation

Industry Comparison

ROE Formula & Interpretation

ROE = (Net Income / Shareholders’ Equity) × 100%

Higher ROE indicates efficient use of equity capital. Consider industry norms, company size, and business cycle when evaluating ROE.

Industry Average ROE Your ROE Performance

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