CLXCAUTIOUS

Return on Equity (ROE)

546.1%

Updated 80h ago

Sector Performance

99th percentile

CLX

546.1%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

CLX's current Return on Equity (ROE) of 546.1% means that for every dollar of shareholders' equity, the company generated $5.46 in net profit over the past year — a very high efficiency measure of how well the firm uses investor capital to produce earnings.

This figure far exceeds the sector median of 13.7%, placing CLX in the 99th percentile among its industry peers. Trend data is not available: both the year-over-year and quarter-over-quarter changes are listed as N/A, and no historical values beyond the current figure are provided. The extreme level alone, without any trend to confirm sustainability or deterioration, creates ambiguity — a single outlier point could reflect one-time gains or accounting anomalies rather than ongoing performance. This combination of a sky-high ROE with no trend information introduces uncertainty; it may signal a temporary boost that is not repeatable, raising risk for investors expecting consistent returns. The CAUTIOUS verdict is directly supported by this metric, as the extraordinary ROE without trend data warrants skepticism rather than confidence in the company's future profitability.

Frequently Asked Questions

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

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 CLX'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.