Canadian Stocks with Highest Return on Equity (ROE)

Return on Equity measures how effectively a company uses shareholder capital to generate profits. A higher ROE indicates management is creating more value per dollar invested by shareholders.

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Frequently Asked Questions

Which Canadian company has the highest ROE?

Bitcoin Fund Unit (QBTC:TO) currently leads Canadian stocks with an ROE of 7578.1%. This means for every dollar of shareholder equity, the company generates 7578 cents in annual profit.

What is a good ROE for a Canadian company?

Generally, an ROE above 15% is considered good, above 20% is excellent, and above 25% is exceptional. However, context matters: some industries naturally have higher ROE due to their capital structure. Banks often have high ROE due to leverage, while capital-intensive industries like utilities may have lower but stable ROE.

How is Return on Equity calculated?

ROE is calculated as: Net Income / Shareholders' Equity. For example, if a company earns $50 million in net income and has $250 million in shareholder equity, its ROE is 20%. TTM (Trailing Twelve Months) ROE uses the most recent 12 months of earnings data.

Why do investors care about ROE?

ROE shows how well management is using investor capital. Companies with consistently high ROE can compound shareholder wealth faster. Warren Buffett famously looks for companies with ROE above 15%. However, very high ROE can sometimes indicate high debt levels, so it should be analyzed alongside other metrics.

What's the difference between ROE and ROA?

ROE measures returns on shareholder equity only, while ROA (Return on Assets) measures returns on all assets including debt. A company with high debt might have high ROE but lower ROA. Comparing both helps understand how much leverage a company uses to generate returns.

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