AFRMNEUTRAL

Return on Equity (ROE)

1.7%

Higher than 39% of Technology sector peers

Updated 1078h ago

Sector Performance

39th percentile

AFRM

1.7%

Sector Median

6.5%

Sector Avg

-1.6%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders’ equity; Affirm’s current ROE of 1.7% means it earns $0.017 per dollar of equity, which is low relative to the Technology sector median of 9.1% and places the company in the 36th percentile among its peers.

The year-over-year and quarter-over-quarter changes are both listed as N/A, so no trend data is available to assess direction. The combination of a below-median ROE level with no observable trend implies limited insight into whether performance is improving or deteriorating, creating an uncertain risk profile. This metric neither supports nor contradicts the overall NEUTRAL verdict, as the low ROE suggests below-average profitability efficiency, but the lack of trend data prevents a stronger conclusion.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about AFRM?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does AFRM's Return on Equity (ROE) compare to its sector?

AFRM's Return on Equity (ROE) of 1.7% compares to a Technology sector median of 6.5%, placing it in the 39th percentile.

Who are AFRM's closest peers by Return on Equity (ROE)?

The closest Technology peers by Return on Equity (ROE) include: LSPD (-9.2%), AMBA (-12.8%), WIX (-13.8%), SMAR (-17.3%), TEAM (-19.1%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.