{"product_id":"roe","title":"Return on Equity Calculator","description":"\u003cstyle\u003e\n.roe-calculator {\n  --ink: #0f172a;\n  --muted: #475569;\n  --border: #e2e8f0;\n  --surface: #ffffff;\n  --tint: #f8fafc;\n  --primary: #1d4ed8;\n  --accent: #c2410c;\n  --accent-hover: #9a3412;\n  --chart-1: #1e40af;\n  --chart-2: #0d9488;\n  --chart-3: #7c3aed;\n  --chart-4: #be185d;\n  --chart-5: #334155;\n  color: var(--ink);\n  background: var(--tint);\n  border: 1px solid var(--border);\n  border-radius: 8px;\n  padding: 24px;\n  font-family: -apple-system, BlinkMacSystemFont, \"Segoe UI\", Roboto, Helvetica, Arial, sans-serif;\n  font-size: 15px;\n  line-height: 1.55;\n  width: 100%;\n  max-width: 1200px;\n  margin: 0 auto;\n  box-shadow: 0 1px 2px rgba(15, 23, 42, .06);\n  overflow-wrap: anywhere;\n}\n.roe-calculator,\n.roe-calculator *,\n.roe-calculator *::before,\n.roe-calculator *::after { box-sizing: border-box; }\n.roe-calculator * { min-width: 0; }\n.roe-calculator h2,\n.roe-calculator h3,\n.roe-calculator p { margin-top: 0; }\n.roe-header { display: grid; gap: 12px; margin-bottom: 16px; }\n.roe-title { font-size: 24px; line-height: 1.25; font-weight: 700; margin-bottom: 0; letter-spacing: -.02em; }\n.roe-subtitle { color: var(--muted); margin-bottom: 0; max-width: 760px; }\n.roe-pills { display: flex; flex-wrap: wrap; gap: 8px; }\n.roe-pill { display: inline-flex; align-items: center; gap: 6px; min-height: 32px; padding: 6px 10px; border: 1px solid var(--border); border-radius: 999px; background: var(--surface); color: var(--muted); font-size: 13px; font-weight: 500; font-variant-numeric: tabular-nums; }\n.roe-pill strong { color: var(--ink); font-weight: 700; }\n.roe-toolbar { display: flex; flex-wrap: wrap; gap: 8px; align-items: center; margin-bottom: 16px; }\n.roe-button { appearance: none; border: 1px solid var(--border); border-radius: 6px; min-height: 46px; padding: 11px 18px; font: inherit; font-size: 15px; font-weight: 650; cursor: pointer; display: inline-flex; align-items: center; justify-content: center; gap: 10px; white-space: nowrap; background: var(--surface); color: var(--ink); box-shadow: 0 1px 2px rgba(15, 23, 42, .06); transition: background-color .15s ease, border-color .15s ease, box-shadow .15s ease, transform .15s ease; }\n.roe-button:hover { border-color: #cbd5e1; box-shadow: 0 2px 5px rgba(15, 23, 42, .1); }\n.roe-button:active { transform: translateY(1px); }\n.roe-button:focus-visible,\n.roe-input:focus-visible,\n.roe-link:focus-visible { outline: 3px solid rgba(29, 78, 216, .35); outline-offset: 2px; }\n.roe-download { background: var(--accent); border-color: var(--accent); color: #ffffff; }\n.roe-download:hover { background: var(--accent-hover); border-color: var(--accent-hover); color: #ffffff; }\n.roe-button-icon { width: 18px; height: 18px; flex: 0 0 18px; }\n.roe-workspace { display: grid; grid-template-columns: minmax(0, 1fr) minmax(0, 1fr); gap: 16px; align-items: start; margin-bottom: 16px; }\n.roe-card { background: var(--surface); border: 1px solid var(--border); border-radius: 8px; padding: 20px; box-shadow: 0 1px 2px rgba(15, 23, 42, .06); }\n.roe-card-title { font-size: 18px; line-height: 1.35; font-weight: 650; margin-bottom: 4px; }\n.roe-card-intro { color: var(--muted); font-size: 13px; font-weight: 500; margin-bottom: 16px; }\n.roe-form { display: grid; gap: 16px; }\n.roe-field { display: grid; gap: 6px; align-content: start; }\n.roe-label { font-size: 14px; font-weight: 600; color: var(--ink); }\n.roe-input-wrap { position: relative; }\n.roe-input { width: 100%; min-height: 46px; border: 1px solid #cbd5e1; border-radius: 6px; background: #ffffff; color: var(--ink); padding: 10px 12px; font: inherit; font-size: 15px; font-variant-numeric: tabular-nums; }\n.roe-input:hover { border-color: #94a3b8; }\n.roe-helper { min-height: 40px; margin: 0; color: var(--muted); font-size: 13px; font-weight: 500; line-height: 1.45; }\n.roe-error { min-height: 19px; margin: 0; color: #b91c1c; font-size: 13px; font-weight: 600; line-height: 1.4; }\n.roe-results { display: grid; gap: 12px; }\n.roe-primary-result { background: var(--tint); border: 1px solid var(--border); border-left: 4px solid var(--primary); border-radius: 6px; padding: 16px; }\n.roe-primary-label { color: var(--muted); font-size: 13px; font-weight: 600; margin-bottom: 4px; }\n.roe-primary-value { font-size: 30px; line-height: 1.15; font-weight: 700; font-variant-numeric: tabular-nums; overflow-wrap: anywhere; }\n.roe-calculator .roe-primary-note { color: var(--muted); font-size: 13px; font-weight: 500; margin: 8px 0 0; }\n.roe-metric-grid { display: grid; grid-template-columns: repeat(2, minmax(0, 1fr)); gap: 12px; }\n.roe-metric { border: 1px solid var(--border); border-radius: 6px; padding: 12px; background: #ffffff; }\n.roe-metric-label { color: var(--muted); font-size: 13px; font-weight: 600; margin-bottom: 4px; }\n.roe-metric-value { font-size: 20px; line-height: 1.25; font-weight: 700; font-variant-numeric: tabular-nums; overflow-wrap: anywhere; }\n.roe-calculator .roe-metric-note { color: var(--muted); font-size: 13px; font-weight: 500; margin: 6px 0 0; }\n.roe-chart-card,\n.roe-table-card { margin-bottom: 16px; }\n.roe-chart-heading { display: grid; gap: 4px; margin-bottom: 16px; }\n.roe-chart-heading p { color: var(--muted); font-size: 13px; font-weight: 500; margin-bottom: 0; }\n.roe-chart-cluster { display: grid; grid-template-columns: minmax(0, 720px) minmax(220px, 270px); justify-content: center; align-items: end; gap: 24px; }\n.roe-plot-wrap { width: 100%; min-height: 320px; display: grid; place-items: center; }\n.roe-chart-svg { width: 100%; height: 340px; display: block; overflow: visible; }\n.roe-chart-empty { width: 100%; min-height: 112px; display: grid; place-items: center; text-align: center; padding: 20px; border: 1px dashed #cbd5e1; border-radius: 6px; color: var(--muted); background: var(--tint); font-size: 13px; font-weight: 600; }\n.roe-chart-empty[hidden],\n.roe-chart-svg[hidden] { display: none; }\n.roe-legend { display: grid; gap: 10px; align-content: center; }\n.roe-legend-row { display: grid; grid-template-columns: 12px minmax(0, auto) minmax(0, auto); align-items: center; justify-content: start; gap: 8px 12px; font-size: 13px; font-weight: 500; }\n.roe-swatch { width: 12px; height: 12px; border-radius: 3px; }\n.roe-legend-name { color: var(--ink); }\n.roe-legend-value { color: var(--muted); font-variant-numeric: tabular-nums; white-space: nowrap; }\n.roe-calculator .roe-caption { margin: 24px 0 0; border: 1px solid var(--border); border-radius: 6px; background: var(--tint); padding: 10px 12px; color: var(--muted); font-size: 13px; font-weight: 500; }\n.roe-safe-stack .roe-chart-cluster { grid-template-columns: minmax(0, 720px); row-gap: 20px; }\n.roe-safe-stack .roe-legend { justify-content: center; }\n.roe-safe-stack .roe-caption { margin-top: 20px; }\n.roe-table-overflow { overflow-x: auto; width: 100%; border: 1px solid var(--border); border-radius: 6px; background: #ffffff; }\n.roe-table { border-collapse: collapse; width: 100%; min-width: 660px; font-variant-numeric: tabular-nums; }\n.roe-table th,\n.roe-table td { padding: 11px 12px; text-align: right; border-bottom: 1px solid var(--border); vertical-align: middle; }\n.roe-table th:first-child,\n.roe-table td:first-child { text-align: left; }\n.roe-table thead th { background: #172554; color: #ffffff; font-size: 13px; font-weight: 700; }\n.roe-table tbody tr:last-child td { border-bottom: 0; }\n.roe-table tbody tr:hover { background: var(--tint); }\n.roe-table-current { background: #eff6ff; font-weight: 700; }\n.roe-calculator .roe-table-note { margin: 16px 0 0; border: 1px solid var(--border); border-radius: 6px; background: var(--tint); padding: 10px 12px; color: var(--muted); font-size: 13px; font-weight: 500; }\n.roe-safe-table-stack .roe-table-note { margin-top: 20px; }\n.roe-education { display: grid; gap: 16px; }\n.roe-education-section { background: var(--surface); border: 1px solid var(--border); border-radius: 8px; padding: 20px; box-shadow: 0 1px 2px rgba(15, 23, 42, .06); }\n.roe-education-title { font-size: 18px; line-height: 1.35; font-weight: 650; margin-bottom: 10px; }\n.roe-education-subtitle { font-size: 15px; line-height: 1.45; font-weight: 700; margin: 16px 0 8px; }\n.roe-education p:last-child { margin-bottom: 0; }\n.roe-formula { display: block; padding: 12px; border: 1px solid var(--border); border-radius: 6px; background: var(--tint); font-weight: 700; font-variant-numeric: tabular-nums; overflow-wrap: anywhere; }\n.roe-link { color: var(--primary); text-decoration: underline; text-decoration-thickness: 1px; text-underline-offset: 2px; }\n.roe-link:hover { color: #1e3a8a; }\n.roe-sr-only { position: absolute; width: 1px; height: 1px; padding: 0; margin: -1px; overflow: hidden; clip: rect(0, 0, 0, 0); white-space: nowrap; border: 0; }\n@media (max-width: 899px) {\n  .roe-workspace { grid-template-columns: minmax(0, 1fr); }\n  .roe-chart-cluster { grid-template-columns: minmax(0, 720px); row-gap: 20px; }\n  .roe-legend { justify-content: center; }\n}\n@media (max-width: 639px) {\n  .roe-calculator { padding: 16px; }\n  .roe-card,\n  .roe-education-section { padding: 16px; }\n  .roe-metric-grid { grid-template-columns: minmax(0, 1fr); }\n  .roe-toolbar { align-items: stretch; }\n  .roe-button { flex: 1 1 auto; }\n  .roe-chart-svg { height: 320px; }\n  .roe-chart-cluster { gap: 16px; }\n  .roe-calculator .roe-caption { margin-top: 16px; }\n}\n@media (max-width: 359px) {\n  .roe-calculator { padding: 12px; }\n  .roe-card,\n  .roe-education-section { padding: 12px; }\n  .roe-button { width: 100%; }\n  .roe-chart-svg { height: 300px; }\n}\n\u003c\/style\u003e\n\u003cdiv class=\"roe-calculator\" data-calculator-root\u003e\n  \u003cheader class=\"roe-header\"\u003e\n    \u003ch2 class=\"roe-title\"\u003eReturn on Equity Calculator\u003c\/h2\u003e\n    \u003cp class=\"roe-subtitle\"\u003eMeasure how much net profit a business produces for each dollar of shareholders’ equity, then test how the ratio changes across different equity levels.\u003c\/p\u003e\n    \u003cdiv class=\"roe-pills\" aria-label=\"Live calculation summary\"\u003e\n      \u003cspan class=\"roe-pill\"\u003eROE \u003cstrong class=\"roe-pill-roe\"\u003e7.57%\u003c\/strong\u003e\u003c\/span\u003e\n      \u003cspan class=\"roe-pill\"\u003eNet profit \u003cstrong class=\"roe-pill-profit\"\u003e$34,500.00\u003c\/strong\u003e\u003c\/span\u003e\n      \u003cspan class=\"roe-pill\"\u003eEquity \u003cstrong class=\"roe-pill-equity\"\u003e$456,000.00\u003c\/strong\u003e\u003c\/span\u003e\n    \u003c\/div\u003e\n  \u003c\/header\u003e\n\n  \u003cdiv class=\"roe-toolbar\" aria-label=\"Calculator actions\"\u003e\n    \u003cbutton class=\"roe-button roe-download\" type=\"button\"\u003e\n      \u003csvg class=\"roe-button-icon\" viewbox=\"0 0 24 24\" aria-hidden=\"true\" focusable=\"false\"\u003e\u003cpath fill=\"currentColor\" d=\"M5 2h10l4 4v16H5V2zm9 2v4h4M8 12l2.2 3L8 18h2.2l1.1-1.8 1.1 1.8h2.2l-2.2-3 2.2-3h-2.2l-1.1 1.8-1.1-1.8H8z\"\u003e\u003c\/path\u003e\u003c\/svg\u003e\n      \u003cspan\u003eDownload Excel\u003c\/span\u003e\n    \u003c\/button\u003e\n    \u003cbutton class=\"roe-button roe-reset\" type=\"button\"\u003eReset\u003c\/button\u003e\n  \u003c\/div\u003e\n\n  \u003cdiv class=\"roe-workspace\"\u003e\n    \u003csection class=\"roe-card\" aria-labelledby=\"roe-inputs-title\"\u003e\n      \u003ch3 class=\"roe-card-title\" id=\"roe-inputs-title\"\u003eInputs\u003c\/h3\u003e\n      \u003cp class=\"roe-card-intro\"\u003eEnter amounts for the same reporting period. Net profit may be negative; equity must be greater than zero.\u003c\/p\u003e\n      \u003cdiv class=\"roe-form\"\u003e\n        \u003cdiv class=\"roe-field\"\u003e\n          \u003clabel class=\"roe-label\" for=\"roe-net-profit\"\u003eNet profit\u003c\/label\u003e\n          \u003cdiv class=\"roe-input-wrap\"\u003e\n            \u003cinput class=\"roe-input roe-net-profit\" id=\"roe-net-profit\" type=\"text\" inputmode=\"decimal\" autocomplete=\"off\" value=\"$34,500.00\" placeholder=\"$0.00\" aria-describedby=\"roe-net-profit-help roe-net-profit-error\"\u003e\n          \u003c\/div\u003e\n          \u003cp class=\"roe-helper\" id=\"roe-net-profit-help\"\u003eUse net income after taxes and preferred dividends when analyzing common shareholders’ return.\u003c\/p\u003e\n          \u003cp class=\"roe-error\" id=\"roe-net-profit-error\" aria-live=\"polite\"\u003e\u003c\/p\u003e\n        \u003c\/div\u003e\n        \u003cdiv class=\"roe-field\"\u003e\n          \u003clabel class=\"roe-label\" for=\"roe-equity\"\u003eShareholders’ equity\u003c\/label\u003e\n          \u003cdiv class=\"roe-input-wrap\"\u003e\n            \u003cinput class=\"roe-input roe-equity\" id=\"roe-equity\" type=\"text\" inputmode=\"decimal\" autocomplete=\"off\" value=\"$456,000.00\" placeholder=\"$0.00\" aria-describedby=\"roe-equity-help roe-equity-error\"\u003e\n          \u003c\/div\u003e\n          \u003cp class=\"roe-helper\" id=\"roe-equity-help\"\u003eFor period analysis, average beginning and ending equity is often more representative than a single closing balance.\u003c\/p\u003e\n          \u003cp class=\"roe-error\" id=\"roe-equity-error\" aria-live=\"polite\"\u003e\u003c\/p\u003e\n        \u003c\/div\u003e\n      \u003c\/div\u003e\n    \u003c\/section\u003e\n\n    \u003csection class=\"roe-card\" aria-labelledby=\"roe-results-title\"\u003e\n      \u003ch3 class=\"roe-card-title\" id=\"roe-results-title\"\u003eLive results\u003c\/h3\u003e\n      \u003cp class=\"roe-card-intro\"\u003eResults update as you type and retain full precision until display.\u003c\/p\u003e\n      \u003cdiv class=\"roe-results\"\u003e\n        \u003cdiv class=\"roe-primary-result\"\u003e\n          \u003cdiv class=\"roe-primary-label\"\u003eReturn on equity\u003c\/div\u003e\n          \u003cdiv class=\"roe-primary-value roe-result-roe\"\u003e7.57%\u003c\/div\u003e\n          \u003cp class=\"roe-primary-note roe-result-interpretation\"\u003eThis falls below the 10%–15% reference band and should be interpreted against comparable businesses and the company’s capital structure.\u003c\/p\u003e\n        \u003c\/div\u003e\n        \u003cdiv class=\"roe-metric-grid\"\u003e\n          \u003cdiv class=\"roe-metric\"\u003e\n            \u003cdiv class=\"roe-metric-label\"\u003eProfit per $100 equity\u003c\/div\u003e\n            \u003cdiv class=\"roe-metric-value roe-result-per100\"\u003e$7.57\u003c\/div\u003e\n            \u003cp class=\"roe-metric-note\"\u003eA dollar expression of the same ROE ratio.\u003c\/p\u003e\n          \u003c\/div\u003e\n          \u003cdiv class=\"roe-metric\"\u003e\n            \u003cdiv class=\"roe-metric-label\"\u003eProfit needed for 15% ROE\u003c\/div\u003e\n            \u003cdiv class=\"roe-metric-value roe-result-profit-target\"\u003e$68,400.00\u003c\/div\u003e\n            \u003cp class=\"roe-metric-note\"\u003eAssumes the entered equity balance stays unchanged.\u003c\/p\u003e\n          \u003c\/div\u003e\n          \u003cdiv class=\"roe-metric\"\u003e\n            \u003cdiv class=\"roe-metric-label\"\u003eEquity supported at 15% ROE\u003c\/div\u003e\n            \u003cdiv class=\"roe-metric-value roe-result-equity-target\"\u003e$230,000.00\u003c\/div\u003e\n            \u003cp class=\"roe-metric-note\"\u003eAvailable only when net profit is positive.\u003c\/p\u003e\n          \u003c\/div\u003e\n          \u003cdiv class=\"roe-metric\"\u003e\n            \u003cdiv class=\"roe-metric-label\"\u003eGap to 15% benchmark\u003c\/div\u003e\n            \u003cdiv class=\"roe-metric-value roe-result-gap\"\u003e-7.43 pp\u003c\/div\u003e\n            \u003cp class=\"roe-metric-note\"\u003ePercentage-point difference, not percent change.\u003c\/p\u003e\n          \u003c\/div\u003e\n        \u003c\/div\u003e\n      \u003c\/div\u003e\n      \u003cdiv class=\"roe-sr-only roe-live\" aria-live=\"polite\"\u003eReturn on equity is 7.57 percent.\u003c\/div\u003e\n    \u003c\/section\u003e\n  \u003c\/div\u003e\n\n  \u003csection class=\"roe-card roe-chart-card\" aria-labelledby=\"roe-chart-title\"\u003e\n    \u003cdiv class=\"roe-chart-heading\"\u003e\n      \u003ch3 class=\"roe-card-title\" id=\"roe-chart-title\"\u003eROE sensitivity to the equity base\u003c\/h3\u003e\n      \u003cp class=\"roe-chart-intro\"\u003eNet profit is held constant while equity ranges from 50% to 150% of the entered amount.\u003c\/p\u003e\n    \u003c\/div\u003e\n    \u003cdiv class=\"roe-chart-cluster\"\u003e\n      \u003cdiv class=\"roe-plot-wrap\"\u003e\n        \u003csvg class=\"roe-chart-svg\" role=\"img\" aria-labelledby=\"roe-chart-svg-title roe-chart-svg-desc\"\u003e\u003c\/svg\u003e\n        \u003cdiv class=\"roe-chart-empty\" hidden\u003eEnter a non-zero net profit and positive equity to see the sensitivity chart.\u003c\/div\u003e\n      \u003c\/div\u003e\n      \u003cdiv class=\"roe-legend\" aria-label=\"Chart legend\"\u003e\u003c\/div\u003e\n    \u003c\/div\u003e\n    \u003cp class=\"roe-caption\"\u003eAt the current inputs, ROE is 7.57%. Holding profit constant, a smaller equity base mechanically raises ROE while a larger equity base lowers it.\u003c\/p\u003e\n    \u003cdiv class=\"roe-sr-only roe-chart-summary\"\u003e\u003c\/div\u003e\n  \u003c\/section\u003e\n\n  \u003csection class=\"roe-card roe-table-card\" aria-labelledby=\"roe-table-title\"\u003e\n    \u003ch3 class=\"roe-card-title\" id=\"roe-table-title\"\u003eSensitivity detail\u003c\/h3\u003e\n    \u003cp class=\"roe-card-intro\"\u003eThe current-input row is highlighted. Every row uses the same net profit and a different equity multiplier.\u003c\/p\u003e\n    \u003cdiv class=\"roe-table-overflow\" tabindex=\"0\" aria-label=\"ROE sensitivity table\"\u003e\n      \u003ctable class=\"roe-table\"\u003e\n        \u003cthead\u003e\n          \u003ctr\u003e\n            \u003cth scope=\"col\"\u003eEquity level\u003c\/th\u003e\n            \u003cth scope=\"col\"\u003eEquity amount\u003c\/th\u003e\n            \u003cth scope=\"col\"\u003eNet profit\u003c\/th\u003e\n            \u003cth scope=\"col\"\u003eROE\u003c\/th\u003e\n            \u003cth scope=\"col\"\u003e15% benchmark\u003c\/th\u003e\n          \u003c\/tr\u003e\n        \u003c\/thead\u003e\n        \u003ctbody class=\"roe-table-body\"\u003e\u003c\/tbody\u003e\n      \u003c\/table\u003e\n    \u003c\/div\u003e\n    \u003cp class=\"roe-table-note\"\u003eSensitivity is not a forecast. It isolates the mathematical effect of changing equity while holding profit constant; in practice, financing decisions can also change earnings, risk, and taxes.\u003c\/p\u003e\n  \u003c\/section\u003e\n\n  \u003cdiv class=\"roe-education\"\u003e\n    \u003csection class=\"roe-education-section\"\u003e\n      \u003ch2 class=\"roe-education-title\"\u003eWhat does return on equity measure?\u003c\/h2\u003e\n      \u003cp\u003eReturn on equity, or ROE, compares a company’s net profit with the shareholders’ equity used to support the business. It answers a focused question: how many dollars of accounting profit were produced for each dollar attributable to owners? An ROE of 12% means the company generated about $12 of net profit for every $100 of equity during the period.\u003c\/p\u003e\n      \u003cp\u003eROE is most informative when the numerator and denominator cover compatible periods. Net profit comes from an income statement covering a quarter or year, while equity is a balance-sheet amount measured at a point in time. For a full-year analysis, many analysts use average equity: beginning equity plus ending equity, divided by two. Public-company figures can be checked in annual and quarterly filings; the SEC explains where those statements appear in its guide to \u003ca class=\"roe-link\" href=\"https:\/\/www.sec.gov\/resources-for-investors\/investor-alerts-bulletins\/how-read-10-k10-q\" target=\"_blank\" rel=\"noopener noreferrer\"\u003ereading Forms 10-K and 10-Q\u003c\/a\u003e.\u003c\/p\u003e\n    \u003c\/section\u003e\n\n    \u003csection class=\"roe-education-section\"\u003e\n      \u003ch2 class=\"roe-education-title\"\u003eHow should each input be entered?\u003c\/h2\u003e\n      \u003ch3 class=\"roe-education-subtitle\"\u003eNet profit\u003c\/h3\u003e\n      \u003cp\u003eEnter net income for the reporting period in U.S. dollars. This is a required field, but it may be zero or negative. A positive value produces a positive ROE when equity is positive. A loss produces a negative ROE, signaling that the company reduced rather than increased book value through current-period earnings. Avoid mixing operating profit, EBITDA, or cash flow with shareholders’ equity because those measures exclude items that net income includes.\u003c\/p\u003e\n      \u003ch3 class=\"roe-education-subtitle\"\u003eShareholders’ equity\u003c\/h3\u003e\n      \u003cp\u003eEnter positive common shareholders’ equity for the same analytical period. This field is required and must be greater than zero for a conventional ROE calculation. If beginning and ending equity differ materially, use their average unless a specific methodology calls for closing equity. Negative equity makes the standard ratio difficult to interpret because a positive profit divided by a negative book value produces a negative percentage that does not describe ordinary operating efficiency. The calculator therefore treats zero or negative equity as invalid rather than displaying a potentially misleading result.\u003c\/p\u003e\n      \u003cp\u003eFor U.S. issuers, audited equity and net income are generally available in Form 10-K financial statements. Investor.gov’s overview of \u003ca class=\"roe-link\" href=\"https:\/\/www.investor.gov\/introduction-investing\/getting-started\/researching-investments\/how-read-10-k\" target=\"_blank\" rel=\"noopener noreferrer\"\u003ehow to read a 10-K\u003c\/a\u003e provides a practical map of the filing.\u003c\/p\u003e\n    \u003c\/section\u003e\n\n    \u003csection class=\"roe-education-section\"\u003e\n      \u003ch2 class=\"roe-education-title\"\u003eHow is ROE calculated?\u003c\/h2\u003e\n      \u003cp class=\"roe-formula\"\u003eROE = Net profit ÷ Shareholders’ equity × 100%\u003c\/p\u003e\n      \u003cp\u003eThe calculator keeps the division at full precision and rounds only the displayed percentage. Using the initial example, $34,500 divided by $456,000 equals 0.0756579, or 7.57% after rounding. The “profit per $100 equity” result expresses the same ratio as a dollar amount. The benchmark outputs use 15% as a neutral comparison point: required profit equals equity multiplied by 15%, while supported equity equals positive net profit divided by 15%.\u003c\/p\u003e\n      \u003cp\u003eThe gap result is measured in percentage points. For example, 7.57% is 7.43 percentage points below 15%. This is different from saying it is 49.5% lower, which would be a relative percentage comparison. Percentage points are usually clearer when comparing two rates.\u003c\/p\u003e\n    \u003c\/section\u003e\n\n    \u003csection class=\"roe-education-section\"\u003e\n      \u003ch2 class=\"roe-education-title\"\u003eHow should the results, chart, and table be interpreted?\u003c\/h2\u003e\n      \u003cp\u003eThe primary ROE result shows current-period profitability relative to book equity. A higher positive value can indicate efficient use of shareholder capital, but it is not automatically better. Debt-funded share repurchases, write-downs, or a very small equity base can raise ROE without a matching improvement in operating quality. A low positive ROE can reflect weak margins, underused assets, conservative financing, or a temporary earnings decline. A zero value means the company broke even on a net-income basis, while a negative value reflects a net loss when equity remains positive.\u003c\/p\u003e\n      \u003cp\u003eThe sensitivity chart changes only the equity denominator. The blue line shows calculated ROE at seven equity levels, and the teal line marks a constant 15% benchmark. Moving left represents a smaller equity base and generally raises a positive ROE; moving right represents more equity and lowers it when profit is held constant. The table exposes the exact values behind every plotted point, including the current-input row. This isolates denominator sensitivity rather than predicting how management decisions will affect future profit.\u003c\/p\u003e\n      \u003cp\u003eROE should usually be compared with the company’s own history and with businesses that have similar economics and leverage. Industry structure matters: capital-light companies may sustain higher ROE than businesses that require large factories, inventories, or regulated capital. Investopedia’s \u003ca class=\"roe-link\" href=\"https:\/\/www.investopedia.com\/terms\/r\/returnonequity.asp\" target=\"_blank\" rel=\"noopener noreferrer\"\u003eROE overview\u003c\/a\u003e discusses common interpretations and limitations.\u003c\/p\u003e\n    \u003c\/section\u003e\n\n    \u003csection class=\"roe-education-section\"\u003e\n      \u003ch2 class=\"roe-education-title\"\u003eWhat are the main benefits and common mistakes?\u003c\/h2\u003e\n      \u003cp\u003eROE is compact, easy to calculate, and useful for tracking whether a business is converting owner capital into earnings. It can support trend analysis, peer screening, budgeting, and management review. The Excel export captures the current inputs, results, sensitivity rows, and methodological notes in a real workbook so the analysis can be documented or extended.\u003c\/p\u003e\n      \u003cp\u003eCommon mistakes include using revenue instead of net profit, mixing quarterly profit with annual equity without annualizing, comparing closing equity with a period containing a major capital raise, ignoring preferred dividends, and treating a debt-driven increase in ROE as purely operational progress. Another error is comparing companies from unrelated industries. ROE is a starting point rather than a complete valuation, solvency, or cash-flow assessment. Review leverage, return on assets, margins, cash conversion, and one-time accounting items before drawing broader conclusions. This calculator provides general analytical information and does not provide personalized investment, legal, tax, or accounting advice.\u003c\/p\u003e\n    \u003c\/section\u003e\n  \u003c\/div\u003e\n\u003c\/div\u003e","brand":"FinancialModelsLab","offers":[{"title":"Default Title","offer_id":49909487304947,"sku":"roe","price":0.0,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0522\/6191\/2762\/files\/roe.webp?v=1783935520","url":"https:\/\/financialmodelslab.com\/products\/roe","provider":"Financial Models Lab","version":"1.0","type":"link"}