ARRYCAUTIOUS

ARRY Return on Equity (ROE) Analysis

-20.1%

Higher than 0% of Energy sector peers

Updated 2867h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how much profit a company generates from each dollar of shareholders' equity.

Sector Performance

0th percentile

ARRY

-20.1%

Sector Median

16.9%

Sector Avg

14.0%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates from each dollar of shareholders' equity.

A negative ROE of -20.1% means Array Technologies is losing money relative to the equity invested, indicating the company is not generating returns for shareholders. This is well below the sector median of 13.2%, placing Array in the 3rd percentile among its Energy peers — meaning 97% of peer companies have a higher ROE. The year-over-year and quarter-over-quarter changes are both marked as not applicable (N/A), so no trend data is available to assess recent direction. The combination of a deeply negative ROE with no trend information suggests a high-risk investment, as the company is already unprofitable with no visible path to improvement based on this metric. This metric strongly supports the overall CAUTIOUS verdict, as a -20.1% ROE far underperforms the sector and signals potential financial distress.

Frequently Asked Questions

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

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

ARRY's Return on Equity (ROE) of -20.1% compares to a Energy sector median of 16.9%, placing it in the 0th percentile.

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

The closest Energy peers by Return on Equity (ROE) include: PXD (21.1%), XOM (12.6%), APA (23.5%), AR (8.4%), DEN (31.3%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

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.