Formula
ROE
=
Net Income
Shareholders' Equity
× 100
- Net Income = Total earnings after all expenses, interest, and taxes are deducted from revenue.
- Shareholders' Equity = Total assets minus total liabilities; the book value owned by investors (MRQ).
Alpha Finance
Current Value TTM
Net Income
—
Shareholders' Equity
—
ROE
—
—
ROE Drivers —
Table
| Year | ROE |
|---|
Definition
Return on Equity (ROE) measures how efficiently a company uses shareholders' capital to generate profit. A higher ROE generally indicates stronger management performance and more effective use of investor funds. What is considered healthy depends on the industry — technology and financial companies often report ROEs of 15–25%, while utilities or manufacturing firms typically achieve 8–12% due to capital-intensive business models. A very high ROE driven by low or negative equity (e.g., heavy buybacks) can be misleading.
Excellent≥ 20%
Good12 – 20%
Moderate0 – 12%
Negative< 0%
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