COIN ROE - Return on Equity
Profitability analysis for Coinbase Global Inc
Stock Price
$252.69
+4.00% today
Return on Equity (ROE)
0.3%
Poor - Low capital efficiency
Key Profitability Metrics
Return on Equity
0.3%
Profit per dollar of equity
Return on Assets
0.0%
Profit per dollar of assets
Return on Invested Capital
0.3%
Profit per dollar invested
Industry Comparison
COIN ROE
0.3%
Financial Services Average
12.0%
Difference
-11.7%
Below industry by 97.8%
COIN is underperforming Financial Services peers, suggesting potential for operational improvements.
DuPont Analysis - ROE Breakdown
ROE can be decomposed into three components using the DuPont formula:
ROE = Net Margin × Asset Turnover × Equity Multiplier
Net Profit Margin
0.4%
Thin margins
Asset Turnover
0.00x
Capital intensive
Equity Multiplier
0.00x
Conservative
0.3% = 0.4% × 0.00 × 0.00
What ROE Means for Investors
Capital Efficiency
COIN's ROE of 0.3% shows moderate capital efficiency. There may be room for improvement in profitability.
Competitive Advantage
ROE below industry average may indicate competitive pressures, operational inefficiencies, or industry headwinds affecting Coinbase Global Inc.
Growth Potential
With moderate ROE, COIN may need external financing or debt to fund significant growth initiatives, potentially diluting shareholders or increasing leverage.
Leverage Consideration
COIN has conservative leverage (0.0x equity multiplier), suggesting the ROE reflects genuine operational efficiency rather than financial engineering.
ROE Calculation Data
Most Recent Quarter
Net Income
$$2.58B
Shareholders Equity
$0.00B
Formula
ROE = (Net Income / Shareholders Equity) × 100
Analyze COIN in Depth
View complete financial statements, quant models, and AI-powered insights
Frequently Asked Questions
What is COIN ROE (Return on Equity)?
COIN's Return on Equity (ROE) is 0.3%, which is considered poor. ROE measures how efficiently Coinbase Global Inc generates profit from shareholders' equity. For every dollar of equity, COIN generates 0.3 cents in profit.
Is COIN ROE good or bad?
COIN's ROE of 0.3% is poor and below the Financial Services average of approximately 12.0%. Low capital efficiency. It trails industry peers by 97.8%.
What is the difference between ROE, ROA, and ROIC?
ROE (Return on Equity) at 0.3% measures returns on shareholder equity. ROA (Return on Assets) at 0.0% measures how efficiently COIN uses its total assets. ROIC (Return on Invested Capital) at 0.3% shows returns on all capital invested, including debt. All three metrics help evaluate Coinbase Global Inc's profitability from different angles.
How does COIN generate its ROE?
COIN generates its 0.3% ROE through the DuPont formula: Net Margin (0.4%) × Asset Turnover (0.00) × Equity Multiplier (0.00). This shows thin profit margins, capital-intensive operations, and conservative capital structure.
Should I invest in COIN based on ROE?
While COIN's ROE of 0.3% is poor, ROE alone shouldn't determine investment decisions. Moderate ROE suggests steady but unexceptional returns. Consider ROE alongside other metrics like debt levels, growth rates, valuation multiples, and industry trends before investing.
What factors affect COIN Return on Equity?
COIN's ROE is affected by three key drivers: (1) Profitability - net margins from pricing power and cost management, (2) Efficiency - how well Coinbase Global Inc uses its assets to generate sales, and (3) Leverage - the amount of debt used to finance operations. Financial Services sector dynamics, competitive positioning, management quality, and economic conditions all impact these drivers.
Disclaimer: ROE analysis is based on publicly available financial data and should not be considered financial advice. High ROE can be misleading if driven primarily by excessive leverage. Always analyze multiple metrics and consider your own research before making investment decisions.