COINNEUTRAL

Return on Equity (ROE)

8.5%

Higher than 20% of Financial Services sector peers

Updated 334h ago

Sector Performance

20th percentile

COIN

8.5%

Sector Median

12.4%

Sector Avg

17.4%

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Deep Analysis

Coinbase's Return on Equity (ROE) of 8.5% means that for every dollar of shareholders' equity, the company generated 8.5 cents in profit over the past year — a measure of how efficiently it uses investor capital.

This is well below the Financial Services sector median of 13.9%, placing Coinbase in the 25th percentile among its peers, indicating weaker profitability relative to competitors. The metric shows no trend data: the year-over-year change is N/A, the quarter-over-quarter change is N/A, and no direction is available for the last eight quarters. With a single data point at a below-median level and no trend information, an investor faces limited insight into whether performance is improving or worsening, increasing uncertainty around future returns. This combination of a single low ROE figure without historical context does not directly contradict the overall NEUTRAL verdict, but it does not provide support for either a bullish or bearish stance.

Frequently Asked Questions

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

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

COIN's Return on Equity (ROE) of 8.5% compares to a Financial Services sector median of 12.4%, placing it in the 20th percentile.

Who are COIN'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.