BOXNEUTRAL

Return on Equity (ROE)

-33.9%

Higher than 9% of Technology sector peers

Updated 1078h ago

Sector Performance

9th percentile

BOX

-33.9%

Sector Median

6.5%

Sector Avg

-1.6%

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Deep Analysis

Box, Inc.’s current Return on Equity (ROE) of -33.9% means the company generated a net loss of nearly 34 cents for every dollar of shareholder equity over the past year, indicating poor profitability relative to the capital invested.

This is well below the sector median of 6.7%, placing Box in the 8th percentile among technology peers, meaning most competitors deliver positive returns on equity. The trend data is not available: both the year-over-year and quarter-over-quarter changes are marked as N/A, so no direction can be inferred from recent performance. The combination of a deeply negative ROE and the absence of trend information suggests elevated investment risk, as the company is currently destroying shareholder value without any visible sign of improvement. This metric directly contradicts the overall NEUTRAL verdict because a negative ROE far below the sector median typically signals fundamental weakness rather than a balanced risk-return profile.

Frequently Asked Questions

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

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

BOX's Return on Equity (ROE) of -33.9% compares to a Technology sector median of 6.5%, placing it in the 9th percentile.

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

The closest Technology peers by Return on Equity (ROE) include: MSTR (-7.9%), LSPD (-9.2%), AMBA (-12.8%), WIX (-13.8%), SMAR (-17.3%).

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.