<div id="readability-page-1"><div><p>Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE).  By way of learning-by-doing, we'll look at ROE to gain a better understanding of Crawford &amp; Company (NYSE:CRD.B).</p><p> Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money.  In short, ROE shows the profit each dollar generates with respect to its shareholder investments. </p><p>This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.</p><h2> How To Calculate Return On Equity? </h2><p> <strong>ROE can be calculated by using the formula:</strong> </p><p> Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity </p><p>So, based on the above formula, the ROE for Crawford is:</p><p>17% = US$30m ÷ US$175m (Based on the trailing twelve months to June 2025).</p><p> The 'return' is the amount earned after tax over the last twelve months.  So, this means that for every $1 of its shareholder's investments, the company generates a profit of $0.17. </p><p><span> See our latest analysis for Crawford </span></p> <h2> Does Crawford Have A Good ROE? </h2><p> One simple way to determine if a company has a good return on equity is to compare it to the average for its industry.  The limitation of this approach is that some companies are quite different from others, even within the same industry classification.   Pleasingly, Crawford has a superior ROE than the average (13%) in the Insurance industry. </p><figure><img height="632" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/asset/chart/134246-roe-1-dark-2/1755432584706?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="666" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/asset/chart/134246-roe-1-dark-2/1755432584706"/><figcaption>NYSE:CRD.B Return on Equity August 17th 2025</figcaption></figure><p> That is a good sign.    However, bear in mind that a high ROE doesn’t necessarily indicate efficient profit generation.  A higher proportion of debt in a company's capital structure may also result in a high ROE, where the high debt levels could be a huge risk .   You can see the 2 risks we have identified for Crawford by visiting our <b>risks dashboard</b> for free  on our platform here. </p><h2> Why You Should Consider Debt When Looking At ROE </h2><p> Most companies need money -- from somewhere -- to grow their profits.  The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing.  In the first and second cases, the ROE will reflect this use of cash for investment in the business.  In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity.  That will make the ROE look better than if no debt was used. </p><h2> Crawford's Debt And Its 17% ROE </h2><p> Crawford does use a high amount of debt to increase returns. It has a debt to equity ratio of 1.29.   There's no doubt its ROE is decent, but the very high debt the company carries is not too exciting to see.   Debt does bring extra risk, so it's only really worthwhile when a company generates some decent returns from it.   </p> <h2> Conclusion  </h2> <p> Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders.  A company that can achieve a high return on equity without debt could be considered a high quality business.  If two companies have the same ROE, then I would generally prefer the one with less debt. </p><p> But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings.  It is important to consider other factors, such as future profit growth -- and how much investment is required going forward.   So I think it may be worth checking this <strong>free</strong> report on analyst forecasts for the company. </p><p>Of course <strong>Crawford may not be the best stock to buy</strong>. So you may wish to see this <strong>free</strong> collection of other companies that have high ROE and low debt.</p></div></div>

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<p>Crawford & Company (NYSE:CRD.B) has a Return on Equity (ROE) of 17%, outperforming the industry average of 13%. This indicates effective profit generation relative to shareholder investments. However, the company carries a high debt-to-equity ratio of 1.29, which adds risk. While a high ROE is positive, it is essential to consider the impact of debt on returns and other factors like future profit growth when evaluating the company's overall quality as an investment.</p>

Should You Be Impressed By Crawford & Company's (NYSE:CRD.B) ROE?