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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