CGCAUTIOUS

Return on Equity (ROE)

9.4%

Higher than 25% of Financial Services sector peers

Updated 166h ago

Sector Performance

25th percentile

9.4%

Sector Median

12.4%

Sector Avg

17.4%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders’ equity—a 14.0% ROE means The Carlyle Group earned $0.14 for every $1 of equity in the most recent period.

This sits slightly above the sector median of 13.9%, placing the firm at the 52nd percentile among Financial Services peers, indicating a roughly average performance relative to competitors. Because the year-over-year change is listed as N/A and the quarter-over-quarter change is also N/A, there is no reported trend to evaluate for direction or momentum. With the current ROE level near the sector median but lacking any trend data, the investment opportunity is neutral in terms of profitability efficiency, yet the absence of a trend introduces uncertainty rather than a clear risk or reward signal. This metric neither supports nor contradicts the CAUTIOUS verdict—it aligns with the cautious stance by offering only a static, median-level snapshot without the trend context needed to assess improvement or deterioration.

Frequently Asked Questions

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

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

CG's Return on Equity (ROE) of 9.4% compares to a Financial Services sector median of 12.4%, placing it in the 25th percentile.

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

The closest Financial Services peers by Return on Equity (ROE) include: RF (11.9%), BLK (11.9%), HSBC (11.6%), PNC (11.4%), GOLD (10.8%).

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.