NIO Return on Equity (ROE) Analysis

With a Return on Equity (ROE) of -84.0%, NIO is losing $0.84 for every dollar of shareholder equity, meaning the company is generating substantial losses rather than profits from its invested capital.

This metric is far below the sector median of 13.5%, placing NIO in the 2th percentile among its sector peers, so nearly all comparable companies are more profitable. The trend is N/A because historical, year-over-year (YoY), and quarter-over-quarter (QoQ) changes are all not available, leaving no basis to judge whether losses are easing or worsening. The combination of a deeply negative ROE with no trend data points to elevated investment risk, as current profitability is poor and there is no evidence of improvement. This metric directly supports the overall CAUTIOUS verdict, since a -84.0% ROE signals serious operational or financial challenges that threaten shareholder value.

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