ASANCAUTIOUS

ASAN Return on Equity (ROE) Analysis

-122.6%

Higher than 4% of Technology sector peers

Updated 1653h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholder equity; Asana’s ROE of -122.6% means it is losing more than its entire equity base annually, indicating severe unprofitability.

Sector Performance

4th percentile

ASAN

-122.6%

Sector Median

6.9%

Sector Avg

-3.3%

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Deep Analysis

This is far below the Technology sector median of 6.7%, placing Asana in the 5th percentile among its peers — meaning 95% of sector companies deliver a better return to shareholders. The metric shows no trend data: both the year-over-year and quarter-over-quarter changes are listed as N/A, so there is no historical direction to assess. The combination of an extremely negative ROE level with no observable trend signals high investment risk, as the company is consuming equity without any sign of improvement or deterioration to evaluate. This metric directly contradicts the overall NEUTRAL verdict, because a -122.6% ROE suggests a fundamentally weak business model that warrants caution rather than a neutral stance.

Frequently Asked Questions

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

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 ASAN's Return on Equity (ROE) compare to its sector?

ASAN's Return on Equity (ROE) of -122.6% compares to a Technology sector median of 6.9%, placing it in the 4th percentile.

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

The closest Technology peers by Return on Equity (ROE) include: SMTC (-5.8%), COHU (-7.0%), LSPD (-9.2%), AMBA (-12.8%), WIX (-13.8%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

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.