APTVNEUTRAL

Return on Equity (ROE)

1.8%

Higher than 34% of Consumer Cyclical sector peers

Updated 1927h ago

Sector Performance

34th percentile

APTV

1.8%

Sector Median

8.5%

Sector Avg

-18.9%

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Deep Analysis

Aptiv’s Return on Equity (ROE) of 1.8% means the company generates $0.018 in profit for every dollar of shareholder equity — a measure of how efficiently it uses investor capital to earn profits.

This is well below the Consumer Cyclical sector median of 16.9%, placing Aptiv in the 18th percentile among its peers. The metric has been stable for the last eight quarters, with every historical value reading exactly 1.8%, and year-over-year and quarter-over-quarter changes both at +0.0%. The combination of a very low ROE with no upward movement suggests limited earnings power and no recent improvement in capital efficiency, which raises the risk that the company is not generating attractive returns for shareholders. This metric directly supports the overall NEUTRAL verdict: the stagnant, below-average ROE does not justify a bullish stance, but the lack of deterioration also avoids a clearly bearish signal.

Frequently Asked Questions

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

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 APTV's Return on Equity (ROE) compare to its sector?

APTV's Return on Equity (ROE) of 1.8% compares to a Consumer Cyclical sector median of 8.5%, placing it in the 34th percentile.

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

The closest Consumer Cyclical peers by Return on Equity (ROE) include: PVH (3.3%), DKNG (0.6%), LI (-2.5%), HMC (-3.8%), CROX (-6.1%).

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.