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Return on equity (ROE)

How much profit a company earns for each pound or dollar of shareholders’ money in the business.

How it’s calculated

Net income ÷ shareholders’ equity.

How to read it

A 20% ROE means the company earned profit equal to a fifth of its shareholders’ equity in a year. Higher generally indicates a business that uses its capital productively.

ROE can look very high when equity is small — for example after heavy buybacks or with high borrowing — so it is worth reading alongside debt to equity.

How StockDecks scores it

Higher scores better. On the general benchmark, 0% counts as weak, 10% as typical and 20% as strong.

It is one of the measures behind the Profitability rating. Every measure, benchmark and weighting is set out on the methodology page.

Real examples

Across the 107 companies StockDecks has a page for with this figure available, as of 24 October 2026, the middle value is 18%.

Lowest

Lucid -126% · Rivian Automotive -57.5% · Ford Motor -18.3%

Highest

Mastercard 241.2% · Boeing 173.5% · Apple 148.8%

Figures from Yahoo Finance, captured 24 October 2026. Being high or low on one measure says little on its own — each company page shows how this measure sits alongside the others.

Related terms

All glossary termsSee every company’s scores