# Why can't ROE Return on Equity of companies we invest in be 100% or 200% but usually less than 40%?

This question is about to analyze the financials of a company we invest in:

Shareholder's Equity is defined as `(Asset - Liability)`. Let's say if the company is started with \$100 million, and it earns \$0 million. Now the bank loaned the company \$100 million (maybe because the company has a patent).

Let's say after 1 year, the company earns \$10 million, and the asset is \$100 million, and liability is \$100 million, then isn't it true that the ROE is infinite or (or even minus infinite?). If the asset is \$101 million and liability is \$100 million, then ROE is \$10 million / \$1 million = 1000%, and if the asset is \$99 million and the liability is \$100 million, then the ROE is \$10 million / (-\$1 million) = -1000%. But we almost never see ROE greater than 100% or negative, but usually is seen as 40% at most and is considered to be spectacular. Why isn't ROE much larger such as 100% or 300% or negative?