What is a good value for return on equity (ROE)?

ROE is calculated by dividing net profit by total shareholders equity.

For the first few years, most start-ups are not profitable, so ROE will be negative, and that is okay. Once a company becomes mature, an ROE of 15% to 20% is generally considered good.

Related Questions:

How can I see my balance sheet?

Does everybody agree on the definition of return on equity?


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