ACGLNEUTRAL

Return on Equity (ROE)

18.2%

Higher than 69% of Financial Services sector peers

Updated 1928h ago

Sector Performance

69th percentile

ACGL

18.2%

Sector Median

12.9%

Sector Avg

17.5%

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Deep Analysis

Return on equity (ROE) shows how much profit a company generates for each dollar of shareholder equity – Arch Capital’s 18.2% means it earns $0.182 for every $1 of equity.

This is above the Financial Services sector median of 14.3%, placing the stock in the 68th percentile among peers. The trend is stable, with year-over-year and quarter-over-quarter changes both at +0.0%, meaning ROE has remained exactly 18.2% for eight consecutive quarters. A high and stable ROE indicates consistent profitability, which lowers investment risk, but the lack of growth also suggests limited near-term upside opportunity. This metric supports the overall NEUTRAL verdict: the level is solidly above average, but the flat trend provides no clear catalyst to be more bullish or bearish.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about ACGL?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does ACGL's Return on Equity (ROE) compare to its sector?

ACGL's Return on Equity (ROE) of 18.2% compares to a Financial Services sector median of 12.9%, placing it in the 69th percentile.

Who are ACGL's closest peers by Return on Equity (ROE)?

The closest Financial Services peers by Return on Equity (ROE) include: BLK (11.9%), RF (11.9%), HSBC (11.6%), GOLD (10.8%), PRU (10.7%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.