CDWNEUTRAL

Return on Equity (ROE)

44.2%

Updated 224h ago

Sector Performance

90th percentile

CDW

44.2%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how efficiently a company converts shareholder equity into profit; CDW’s current ROE of 44.2% means it generates $0.442 of profit for every dollar of equity.

That figure far exceeds the sector median of 13.8%, placing CDW in the 89th percentile among its peers. Year-over-year and quarter-over-quarter changes are both listed as N/A, and no trend direction is available for the last eight quarters. The combination of a very high ROE with no trend data creates uncertainty: the level indicates strong current profitability, but the absence of historical movement prevents any judgment about whether that performance is stable or deteriorating. This metric supports the overall NEUTRAL verdict because while the ROE level is excellent, the lack of trend information and the platform’s broader assessment suggest other factors temper the outlook.

Frequently Asked Questions

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

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.

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

The closest peers by Return on Equity (ROE) include: MRNA (-36.6%), FICO (-37.3%), XRAY (-37.7%), VRSN (-38.3%), MSCI (-45.3%).

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.