SFAI member · international network in 115 countries
Home / Glossary / Return on equity (ROE) and return on assets (ROA)
Glossary · Corporate Finance and Valuation

What is Return on equity (ROE) and return on assets (ROA)?

ROE is net profit divided by average equity; ROA is net profit (or profit before interest) divided by average total assets.

DuPont analysis breaks ROE down into profit margin, asset turnover and leverage. In high-inflation periods, ratios based on statements not adjusted for inflation can be misleading.

Source: Finansal analiz uygulaması

Related terms

Last updated: November 8, 2026 · This definition is for general information only.

Proposal request

Fields marked with an asterisk are required.

CallRequest a Proposal