Return On Equity (ROE) Calculator - Measuring Management Power
Calculate ROE to measure a company's profitability from the shareholders' perspective. Essential for stock analysis and financial health checks.
ROE Calculator
Measure the return generated on shareholder investments using DuPont decomposition.
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RETURN ON EQUITY
25.0%
STRONG RETURNSPROFIT MARGIN8.3%
ASSET TURNOVER1.20x
EQUITY MULT2.50x
DUPONT ROE25.0%
DuPont Decomposition
How to Use Return On Equity (ROE) Calculator - Measuring Management Power in 3 Easy Steps
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Step 1
Find your Net Income on your P&L statement.
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Step 2
Find Total Stockholder Equity on your Balance Sheet.
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Step 3
Select the calculation method (Current vs Average) for better accuracy.
Frequently Asked Questions
In the S&P 500, a long-term average ROE of around 14% is typical. Anything over 15-20% is usually considered excellent.
Yes. Extremely high ROE can indicate low equity (high debt), which increases financial risk.
Lower net income, higher interest payments, or an increase in the equity base without a proportional rise in profit.
ROE only considers shareholder capital; ROA considers all assets (including those funded by debt).