Return on Equity (ROE)
Higher than 41% of Industrials sector peers
Updated 438h ago
Sector Performance
41th percentileCARR
9.9%
Sector Median
12.6%
Sector Avg
-23.6%
Deep Analysis
Return on Equity (ROE) measures how much profit a company generates for every dollar of shareholders' equity — a 9.9% ROE means Carrier earned roughly $0.099 for each dollar of equity last year.
This trails the sector median of 11.6% and places Carrier in the 40th percentile among its Industrials peers, indicating below-average profitability relative to the industry. The year-over-year change and quarter-over-quarter change are both listed as N/A, so there is no available trend data to assess whether performance is improving or declining. Without a trend, investors cannot determine if the current return is stable, rising, or eroding, which adds uncertainty to the investment outlook. This lack of trend information, combined with a ROE below the sector median, suggests a cautious posture is warranted — the company’s profit generation is weaker than its peers, and the absence of historical direction makes it harder to forecast future improvement. The metric supports the CAUTIOUS verdict because the below-median ROE signals lower efficiency in using equity capital, and the missing trend data eliminates a key source of reassurance.
Frequently Asked Questions
What does the Return on Equity (ROE) tell investors about CARR?
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 CARR's Return on Equity (ROE) compare to its sector?
CARR's Return on Equity (ROE) of 9.9% compares to a Industrials sector median of 12.6%, placing it in the 41th percentile.
Who are CARR's closest peers by Return on Equity (ROE)?
The closest Industrials peers by Return on Equity (ROE) include: PWR (13.5%), RTX (11.6%), AME (13.9%), SAIA (10.2%), ROP (9.0%).
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.
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9.9%
Sector Median
12.6%
Sector Avg
-23.6%
How CARR's Return on Equity (ROE) compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.