CLCAUTIOUS

CL Return on Equity (ROE) Analysis

267.4%

Updated 57h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) measures how much profit a company generates from each dollar of shareholder equity, and the current 267.4% means CL is producing $2.67 of profit per $1 of equity.

Sector Performance

99th percentile

267.4%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

363.6%(Jul 2026)

↓ Declining

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Deep Analysis

Return on equity (ROE) measures how much profit a company generates from each dollar of shareholder equity, and the current 267.4% means CL is producing $2.67 of profit per $1 of equity.

That level towers over the sector median of 13.5%, placing CL in the 99th percentile among peers. For trend, year-over-year change is N/A, while quarter-over-quarter change is -26.5%, with the historical values dropping from 363.6% to 267.4%—so the metric has fallen sharply but remains extremely high. The combination of an exceptional level plus a recent decline implies that while CL's profitability is far above peers, the downward movement introduces risk that the edge may be narrowing. This does not contradict the overall CAUTIOUS verdict; rather, it supports it, because the high ROE justifies attention but the recent -26.5% QoQ drop warrants caution about sustainability.

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: LOW (-67.1%), MAR (-69.0%), BMBL (-76.9%), WBA (-82.7%), NIO (-84.0%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

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.