ASANNEUTRAL

Return on Equity (ROE)

-122.6%

Higher than 5% of Technology sector peers

Updated 16h ago

Sector Performance

5th percentile

ASAN

-122.6%

Sector Median

6.7%

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.

Asana's ROE of -122.6% means it is losing more than its entire equity base annually, a signal that the company is not generating positive returns for shareholders. This sits far below the technology sector median of 6.7%, placing Asana in the 5th percentile among peers — nearly the worst performance in its industry. No trend data is available because the year-over-year and quarter-over-quarter changes are both marked N/A, and the historical values show only the single current figure. The combination of an extremely negative ROE with no observable trend introduces uncertainty: investors cannot assess whether losses are improving or worsening, elevating risk for any potential recovery play. This metric strongly contradicts the overall NEUTRAL verdict, as a -122.6% ROE at the 5th percentile typically signals a distressed or unprofitable business, not a balanced risk-reward profile.

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 6.7%, placing it in the 5th percentile.

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

The closest Technology peers by Return on Equity (ROE) include: GTLB (-5.6%), NET (-7.0%), SMTC (-7.3%), MSTR (-7.9%), COHU (-9.5%).

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.