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Return on equity (ROE)

Return on equity (ROE) measures how much profit a company generates for each dollar of shareholders’ equity.

Return on equity (ROE) is net income divided by shareholders’ equity, expressed as a percentage. An ROE of 20% means the company earned $0.20 of profit for every $1 of equity capital. It is a widely used measure of profitability and how efficiently a company uses the money shareholders have invested.

A consistently high ROE can signal a durable, well-run business with a competitive advantage. But ROE can be inflated by heavy debt (which shrinks the equity base), so it is best read alongside leverage measures like debt-to-equity and alongside return on assets (ROA).

Related profitability measures used on stocks-llm include ROA (return on assets) and ROIC (return on invested capital). All are delayed data, shown with their as-of date.

Highest return-on-equity companies in the catalog

CompanyROE
1XCF Global, Inc. (SAFX)+196.5%
2Mastercard (MA)+193.2%
3CAPRI HOLDINGS LTD (CPRI)+171.3%
4GCM GROSVENOR INC CLASS A (GCMG)+168.1%
5AppLovin (APP)+156.2%

Live from the catalog, last updated 2026-10-20 — delayed data from SEC EDGAR + market data.

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Related terms

  • Earnings per share (EPS) — Earnings per share (EPS) is a company’s net profit divided by its shares outstanding — the profit attributable to each single share.
  • Earnings surprise and the reaction — An earnings surprise is how far a company’s reported profit landed from the analyst forecast; the reaction is what its share price actually did afterwards — and the two disagree far more often than people expect.
  • Net profit margin — Net profit margin is the share of every revenue dollar a company keeps as bottom-line profit, after all costs, interest, and taxes.
  • Gross margin — Gross margin is the share of revenue left after the direct cost of producing a company’s goods or services.
  • Operating margin — Operating margin is the share of revenue a company keeps as operating profit, after production costs and operating expenses but before interest and taxes.

See more terms in the stocks-llm glossary.

Informational only — NOT financial advice. This is an educational definition, not a recommendation to buy or sell anything. Metrics on stocks-llm are delayed data and may be missing or stale. Always verify information independently and consult a qualified financial professional before making any investment decision.