BIONEUTRAL

Return on Equity (ROE)

2.5%

Higher than 37% of Healthcare sector peers

Updated 412h ago

Sector Performance

37th percentile

BIO

2.5%

Sector Median

8.9%

Sector Avg

37.1%

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Deep Analysis

Bio-Rad's Return on Equity (ROE) of 2.5% means that for every dollar of shareholders' equity, the company generated 2.5 cents of net profit in the most recent period—a measure of how efficiently it uses investor capital.

This sits well below the healthcare sector median of 8.9%, placing Bio-Rad in the 37th percentile among its peers, indicating below-average profitability relative to the industry. The year-over-year change is not available, but the quarter-over-quarter drop of 75.5% (from 10.2% to 2.5%) shows a sharp recent decline in earnings efficiency. The combination of a low ROE level and a steep negative trend points to elevated investment risk, as the company is currently generating minimal returns on equity and has lost substantial ground in a single quarter. This metric supports the overall NEUTRAL verdict: it highlights a clear weakness that warrants caution, but the lack of a longer historical trend and the single quarter's volatility prevent a bearish conclusion on its own.

Frequently Asked Questions

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

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

BIO's Return on Equity (ROE) of 2.5% compares to a Healthcare sector median of 8.9%, placing it in the 37th percentile.

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

The closest Healthcare peers by Return on Equity (ROE) include: BIIB (7.7%), ZBH (6.1%), TECH (5.3%), TMO (13.5%), 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.