Xero

Xero ROE

The Return on Equity (ROE) of Xero (XRO.AX) as of Nov 13, 2026 is 3.10 %. In the previous year, Return on Equity (ROE) was 10.38 % — a change of -70.14% (lower).

ROE

3.10 %

YoY

-70.14%

Last updated:

In 2026, Xero's return on equity (ROE) was 3.10 %, a -70.14% increase from the 10.38 % ROE in the previous year.

The Xero ROE history

  • 3 Years

  • 10 Years

  • 25 Years

  • Max

ROE
Date
ROE
Jan 1, 2019
-7.47 NZD
Jan 1, 2020
0.81 NZD
Jan 1, 2021
2.87 NZD
Jan 1, 2022
-0.95 NZD
Jan 1, 2023
-11.53 NZD
Jan 1, 2024
11.50 NZD
Jan 1, 2025
10.38 NZD
Jan 1, 2026
3.10 NZD
The Xero ROE history
YEARROEYoY
3.10 %-70.14%
10.38 %-9.79%
11.50 %-199.73%
-11.53 %+1,111.70%
-0.95 %-133.16%
2.87 %+252.19%
0.81 %-110.91%
-7.47 %-26.41%
-10.15 %-67.93%
-31.66 %+5.13%
-30.11 %+49.68%
-20.12 %+44.28%
-13.94 %—

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Xero Stock analysis

What does Xero do? Xero Ltd is a company from New Zealand that was founded in 2006. The company offers a business software solution for cloud accounting, invoicing, order processing, and much more. The comprehensive offering from Xero allows companies and self-employed individuals of all sizes to easily manage their finances and accounting in one system. Xero was founded by Rod Drury and Hamish Edwards, who recognized the difficulties that small and medium-sized businesses face in effectively managing their finances. They wanted to develop an accounting software that was easy to use and fully available in the cloud. The company grew quickly and was able to raise significant funds through a series of investment rounds and share placements. Xero also opened an office in Canada in 2018 and has been steadily expanding its presence in North America since then. Currently, Xero has over 2 million subscribers in over 180 countries worldwide. The business model of Xero is based on a subscription software that customers pay for on a monthly basis. The company offers various pricing models, with monthly costs depending on the size of the company and the required features. Xero thus offers a scalable cloud software platform that can be used by small to larger companies. Xero also has an API integration and a comprehensive library of partner applications that run on the Xero cloud platform. Xero customers can connect their accounting functions with additional applications to automate and optimize their business. Xero offers a comprehensive suite of financial software solutions for small and medium-sized businesses in the areas of accounting, invoicing, and payment processing. Xero's core product is the accounting software, which allows companies to manage their finances from a single place. Xero's features include creating invoices, matching transactions, generating reports, and creating budget plans. With Xero, customers can create and send invoices electronically to clients. They can set payment periods to remind customers of overdue invoices. Xero also allows customers to accept payments directly online. Xero also offers payment solutions for businesses. Xero supports payment solutions such as PayPal, Stripe, Braintree, and many more. Xero offers a wide range of products that can streamline the accounting process for businesses. The products include accounting software, payroll software, invoicing and payment processing software, project management software, and tax software solutions. Xero offers a wide range of software solutions for businesses to optimize their financial management and automate accounting. The company has a rapidly growing global presence and is expected to be the leading cloud accounting software worldwide by user count, according to market researchers. Xero also offers a wide library of partner applications to meet the needs of its customers and optimize their businesses. Xero is one of the most popular companies on Eulerpool.

ROE Details

Decoding Xero's Return on Equity (ROE)

Xero's Return on Equity (ROE) is a fundamental metric evaluating the company's profitability relative to its equity. Calculated by dividing net income by shareholder's equity, ROE illustrates how effectively the company is generating profits from shareholders’ investments. A higher ROE represents enhanced efficiency and profitability.

Year-to-Year Comparison

Analyzing Xero's ROE on a yearly basis aids in tracking its profitability trends and financial performance. An increasing ROE suggests enhanced profitability and value generation for shareholders, whereas a declining ROE may indicate issues in profit generation or equity management.

Impact on Investments

Xero's ROE is instrumental for investors assessing the company's profitability, efficiency, and investment attractiveness. A robust ROE indicates the firm’s adeptness at converting equity investments into profits, thereby enhancing its appeal to potential and current investors.

Interpreting ROE Fluctuations

Changes in Xero’s ROE can emanate from variations in net income, equity capital, or both. These fluctuations are scrutinized to evaluate management’s effectiveness, financial strategies, and the inherent risks and opportunities, aiding investors in making informed decisions.

Frequently Asked Questions about Xero stock

Return on Equity (ROE) of Xero is 3.10 % in 2026.

Return on Equity (ROE) of Xero changed from 10.38 % to 3.10 %, representing a -70.14% change. The value is lower than the previous year.

On Eulerpool you can find the complete historical development of Return on Equity (ROE) Xero since 2006 – with annual values, charts, and detailed analysis.

A 'good' varies by industry and company stage. On Eulerpool, you can compare Return on Equity (ROE)'s Xero with sector peers and the industry average to assess whether it is attractive.

To evaluate Return on Equity (ROE)'s, it is essential to compare it with peers in the same industry and sector. On Eulerpool, you can find direct industry comparisons for Return on Equity (ROE).

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Profitability — Xero

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