NIOCAUTIOUS

NIO Return on Equity (ROE) Analysis

-84.0%

Updated 262h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how efficiently a company generates profit from shareholders’ money.

Sector Performance

2th percentile

NIO

-84.0%

Sector Median

13.8%

Sector Avg

32.0%

Prior Period

-349.7%(Jun 2026)

↑ Improving

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Deep Analysis

Return on Equity (ROE) measures how efficiently a company generates profit from shareholders’ money.

NIO’s current ROE of -84.0% means it is losing $0.84 for every dollar of equity, indicating deep unprofitability. This is far below the sector median of 13.8%, placing NIO in the 2nd percentile among peers—only 2% of companies perform worse on this metric. The year-over-year change is not available, but the quarter-over-quarter change is +76.0%, meaning the loss per dollar of equity has narrowed sharply from the prior quarter’s -349.7%. Despite this improvement, the extreme negative level still signals high financial risk, as the company remains far from generating positive returns for investors. This directly contradicts the overall CAUTIOUS verdict: the massive negative ROE and poor peer rank suggest the stock deserves more caution than a neutral stance.

Frequently Asked Questions

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

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.

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

The closest peers by Return on Equity (ROE) include: MRNA (-36.6%), FICO (-37.3%), XRAY (-37.7%), VRSN (-38.3%), MSCI (-45.3%).

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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.