CLCAUTIOUS

Return on Equity (ROE)

363.6%

Updated 104h ago

Sector Performance

99th percentile

363.6%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders’ equity; a 363.6% ROE means that for every $1 of equity, the company earned $3.64 in profit over the trailing twelve months.

This is far above the sector median of 13.8%, placing CL in the 99th percentile among its peers. No trend data is available: the year-over-year change and quarter-over-quarter change are both listed as N/A, so the trajectory cannot be assessed. The combination of an extremely high level with no trend information creates an opportunity to own a highly profitable company, but also introduces risk because such elevated returns are often unsustainable without further context. This metric supports the overall CAUTIOUS verdict, as an outlier ROE of this magnitude—without any trend to confirm stability—warrants skepticism rather than outright confidence.

Frequently Asked Questions

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

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 CL'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.