BOOTNEUTRAL

Return on Equity (ROE)

18.4%

Higher than 73% of Consumer Cyclical sector peers

Updated 168h ago

Sector Performance

73th percentile

BOOT

18.4%

Sector Median

8.7%

Sector Avg

-37.7%

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Deep Analysis

Boot Barn's Return on Equity (ROE) of 18.4% means the company generates $0.184 of profit for every dollar of shareholder equity, measuring how efficiently it uses invested capital.

This sits well above the Consumer Cyclical sector median of 8.7%, placing Boot Barn in the 73rd percentile among its peers. The ROE has been increasing over the last eight quarters, with a quarter-over-quarter rise of +7.6% (from 17.1% to 18.4%); year-over-year change is not available. The combination of a high ROE level and an upward trend signals improving profitability and effective capital allocation, which can lower investment risk. Yet this metric alone contradicts the overall NEUTRAL verdict only in part—the strong ROE supports a bullish angle, but the neutral stance suggests other factors (e.g., valuation or growth outlook) temper that positive signal. Therefore, the metric indicates opportunity but does not override the balanced assessment.

Frequently Asked Questions

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

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

BOOT's Return on Equity (ROE) of 18.4% compares to a Consumer Cyclical sector median of 8.7%, placing it in the 73th percentile.

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

The closest Consumer Cyclical peers by Return on Equity (ROE) include: LI (-2.5%), XPEV (-3.6%), HMC (-3.8%), CROX (-6.1%), CZR (-10.7%).

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.