How can I analyse return ratios (ROE, ROA, ROCE) in FYERS?
Return ratios help you understand how effectively a company is using its resources—shareholders’ equity, assets, and capital employed—to generate profits. These ratios are widely used by investors to evaluate efficiency and compare companies across sectors.
In FYERS, you can view return ratios such as ROE (Return on Equity), ROA (Return on Assets), and ROCE (Return on Capital Employed) under the Fundamentals section when you select any stock on FYERS Web or App.
Where to find them
What do these ratios mean?
| Ratio | What it measures | Why it matters |
|---|
| ROE (Return on Equity) | Net profit as a % of shareholder equity | Shows how much profit the company generates with money invested by its shareholders. Higher ROE = better use of equity. |
| ROA (Return on Assets) | Net profit as a % of total assets | Indicates how efficiently the company uses its assets to generate profits. Useful for comparing asset-heavy vs asset-light businesses. |
| ROCE (Return on Capital Employed) | Operating profit (EBIT) as a % of total capital employed | Reflects how efficiently the company is using both debt and equity to generate returns. Strong ROCE means better capital efficiency. |
How to interpret them
- High ROE → Positive for equity investors, but check if it’s sustainable or boosted by high debt.
- Consistent or rising ROA → Suggests efficient use of company assets. Compare with peers in the same industry.
- Strong ROCE → Implies the company is generating healthy returns on both shareholders’ funds and borrowings.
What if...
| Scenerio | Solution |
|---|
| ROE is very high but ROCE is low | Company may be using excessive debt, which inflates equity returns but weakens overall efficiency. |
| ROA is much lower than peers | The company may be asset-heavy, or assets aren’t being used effectively. |
| ROCE drops sharply year to year | Rising capital base without proportional increase in profit, or falling operating margins. |
Last updated: 11 Sep 2025
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