Skip to main content
Returns

ROE

Net income relative to shareholders' equity - the return generated on book equity.

Formula

Net income (TTM) ÷ shareholders' equity (latest reported)

Served as: ttm · derived. Annual and quarterly observations are never mixed unlabeled.

Where the inputs come from

  • NetIncomeLoss (TTM)
  • StockholdersEquity (latest reported)

Listed highest priority first. Every served figure carries its filing, fiscal period and accession; open any value on the financials page to see them.

How to compare it honestly

Compare within the same sector; leverage inflates ROE, so read alongside debt/equity.

When it is not served

Not meaningful when equity is zero or negative; shown as missing or N/M.

Missing data is missing evidence: it is never shown as zero and never treated as a conclusion.

What it cannot tell you

A high ROE can reflect thin equity rather than a strong business; buybacks mechanically raise it.

Questions worth asking next

  • How much of the return comes from leverage versus operations?
  • Is the equity base shrinking from buybacks or losses?

Research prompts, not recommendations.

See it computed from filings

Related in returns: ROA · ROIC · ROCE · ROE (DuPont) · Asset turnover · Equity multiplier · Tax burden · Interest burden

Definitions are descriptive and educational. Nothing here is a guaranteed signal or personalized investment advice. How the platform computes and cites every figure.

Educational content only. Not financial advice. TrendNalysis provides educational and informational financial analysis built from public SEC filings and economic data (FRED, BLS). It is not financial, investment, tax, or legal advice and is not a recommendation to buy or sell any security. Market pricing is not currently included. Past performance does not guarantee future results. Always do your own research and consult a licensed financial professional before investing.