Return On Equity AnalysisReturn on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how effecently a company utilizes investments to generate income.
Distress Driver Correlations
Return On Equity Over Time Pattern
About Return On EquityFor most industries Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
|Compare to competition|
Chevron Return On Equity Assessment
Based on latest financial disclosure Chevron Corporation has Return On Equity of 6.83%. This is much higher than that of the Energy sector, and significantly higher than that of Oil And Gas industry, The Return On Equity for all stocks is over 1000% lower than the firm.