HOOD

Robinhood Markets
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HOOD

Arincen66/100B

Robinhood Markets return on equity (ROE)

Robinhood Markets's return on equity is 20.00%: net income of 2.00B USD over the last twelve months on shareholders' equity of 10.00B USD.

Today
20.00%
Average, 5 years
-1.04%
Low, 5 years
-50.55%
High, 5 years
25.61%

ROE (return on equity) = net income (last 12 months) ÷ shareholders' equity = 2.00B ÷ 10.00B = 20.00%

ROE (return on equity)
Net income
Shareholders' equity

Each quarter's net income over its last four quarters, over the shareholders' equity at the quarter end.

Why is Robinhood Markets's return on equity so high?

Net margin
42.1%
profit on each dollar of sales
Asset turnover
0.12×
sales on each dollar of assets
Equity multiplier
4.17×
assets on each dollar of equity
Return on equity
20.6%
FY2025
  • FY202542.1% × 0.12 × 4.17 = 20.6%
  • FY202447.8% × 0.11 × 3.28 = 17.7%
  • FY2023-29.0% × 0.11 × 2.63 = -8.1%
  • FY2022-75.7% × 0.06 × 3.35 = -14.8%
  • FY2021-203.1% × 0.09 × 2.71 = -50.6%

The DuPont breakdown, on each year-end's assets and equity, as the return on equity elsewhere on this page. A high equity multiplier means a small equity base: debt, or buybacks that return the equity to shareholders, lift the return on what is left.

ROE (return on equity) by year and by quarter

Fiscal yearPeriod endingROE (return on equity)Net incomeShareholders' equity
Today20.00%2.00B10.00B
FY202531 Dec 202520.60%1.88B9.14B
FY202431 Dec 202417.70%1.41B7.97B
FY202331 Dec 2023-8.08%-541.00M6.70B
FY202231 Dec 2022-14.78%-1.03B6.96B
FY202131 Dec 2021-50.55%-3.69B7.29B
FY202031 Dec 2020—7.45M-55.32M
FY201931 Dec 2019—-106.57M-97.05M

Figures in USD. A quarter's revenue, net income and dividends are those of its last four quarters.

See also:P/E ratio,Market cap,P/S ratio,Debt to equity,Current ratio,All ratios

Common questions about Robinhood Markets's ROE

Source: Financial Modeling Prep