BAYRYNEUTRAL

Return on Equity (ROE)

-6.9%

Higher than 33% of Healthcare sector peers

Updated 165h ago

Sector Performance

33th percentile

BAYRY

-6.9%

Sector Median

8.9%

Sector Avg

30.6%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders’ equity; a negative -6.9% means Bayer is currently losing money relative to the equity invested.

This sits well below the healthcare sector median of 11.0%, placing Bayer in the 30th percentile among its sector peers. The year-over-year change is not available, but quarter-over-quarter the metric improved by +48.5% from -13.4% to -6.9%, though the overall trend direction over the last eight quarters is also not available. The combination of a deeply negative ROE level with a recent sharp quarterly improvement suggests that while the company faces profitability challenges, the narrowing loss may reduce near-term downside risk. This metric contradicts the overall NEUTRAL verdict because a negative ROE far below sector norms typically indicates higher risk, but the quarterly rebound tempers that signal.

Frequently Asked Questions

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

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

BAYRY's Return on Equity (ROE) of -6.9% compares to a Healthcare sector median of 8.9%, placing it in the 33th percentile.

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

The closest Healthcare peers by Return on Equity (ROE) include: BDX (6.6%), ZBH (6.1%), TECH (5.3%), RVTY (3.2%), BIO (2.5%).

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.