Profitability: ROE, ROA and net margin
What shareholders' money and the company's assets earn.
How it works
ROE = profit / equity. ROA = profit / assets. DuPont breakdown: ROE = net margin × asset turnover × leverage.
Results are for guidance only and do not replace professional advice.
Worked example
With the default values:
- Annual net profit85000
- Revenue1200000
- Equity400000
- Total assets950000
you get:
- ROE (return on equity)21.3 %
- ROA (return on assets)8.9 %
- Net margin7.1 %
- Asset turnover1.26 ×
Frequently asked questions
How does the “Profitability: ROE, ROA and net margin” tool work?
ROE = profit / equity. ROA = profit / assets. DuPont breakdown: ROE = net margin × asset turnover × leverage.
What do I need to enter?
Just fill in: annual net profit, revenue, equity, total assets. The result updates as you type.
Can you give an example?
Annual net profit: 85000; Revenue: 1200000; Equity: 400000; Total assets: 950000 → ROE (return on equity): 21.3 %; ROA (return on assets): 8.9 %.
Is this calculator free, and is my data private?
Yes. HOD Calc is completely free with no sign-up. The calculation runs in your browser: nothing you type is sent or stored.