ARVNCAUTIOUS

Return on Equity (ROE)

-18.6%

Higher than 16% of Healthcare sector peers

Updated 1078h ago

Sector Performance

16th percentile

ARVN

-18.6%

Sector Median

11.0%

Sector Avg

31.7%

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Deep Analysis

Arvinas’s Return on Equity (ROE) of -18.6% means the company generated a net loss of $18.60 for every $100 of shareholders’ equity, indicating it is not yet profitable.

This performance ranks in the 16th percentile among its Healthcare sector peers, well below the sector median of 11.1%. Trend data is not available: year-over-year and quarter-over-quarter changes are both listed as N/A, and no historical values beyond the current figure were provided. The combination of a deeply negative ROE and the absence of a trend makes it impossible to assess whether losses are narrowing or widening, which introduces uncertainty rather than a clear opportunity. This metric directly contradicts the overall CAUTIOUS verdict, because a negative ROE already signals weak fundamental performance, and without trend data to suggest improvement, the caution is fully justified.

Frequently Asked Questions

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

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

ARVN's Return on Equity (ROE) of -18.6% compares to a Healthcare sector median of 11.0%, placing it in the 16th percentile.

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

The closest Healthcare peers by Return on Equity (ROE) include: BIIB (7.7%), BDX (6.6%), ZBH (6.1%), TECH (5.3%), RVTY (3.2%).

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.