How to Calculate Return on Equity in Stripe

Making the most of your Stripe data

What is Return on Equity?

Return on Equity (ROE) is a financial ratio that measures how well a company uses its equity to generate profit.

Return on Equity is calculated by taking a company's net income and dividing it by the company's total equity.

For example, if a company has $100 million in equity and $10 million in net income, its ROE is 10%.

Return on equity is a great metric to use when comparing companies in the same industry. If you're trying to decide between two companies in the same industry, you can use ROE to determine which one is more profitable.

How do you calculate Return on Equity in Stripe?

It can be difficult to calculate Return on Equity directly inside of Stripe; that's where Causal comes in.

Causal is a modelling tool which lets you build models on top of your Stripe data. You simply connect Causal to your Stripe account, and then you can build formulae in Causal to calculate your Return on Equity.

What is Causal?

Causal lets you build models effortlessly and share them with interactive, visual dashboards that everyone will understand.

In Causal, you build your models out of variables, which you can then link together in simple plain-English formulae to calculate metrics like Return on Equity. This makes your models easy to understand and quick to build, so you can spend minutes, not days, on your models.

A comparison of formulae in Excel and Causal

When you're done, you can share the link to your model with stakeholders. They'll be able to view your model's outputs in a visual dashboard, rather than a jumble of tabs and complex formulae. The dashboards are interactive, letting viewers tweak your assumptions to see how they affect the model's outputs.

A gif showing how users can adjust model inputs, and how they're reflected in dashboards

Causal lets you add visuals in a single click, letting you plot out graphs and distributions for metrics like Return on Equity.

A gif showing how you can build visuals in Causal

Get started today with Causal

Start building your own Return on Equity models, and connect them to your Stripe data.