CPRICAUTIOUS

Return on Equity (ROE)

35.1%

Higher than 87% of Consumer Cyclical sector peers

Updated 144h ago

Sector Performance

87th percentile

CPRI

35.1%

Sector Median

8.7%

Sector Avg

-37.7%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders’ equity; a 35.1% ROE means Capri Holdings earned $0.351 for every dollar of equity in the latest period.

This is well above the Consumer Cyclical sector median of 8.7%, placing the company in the 87th percentile among its peers. The metric shows an increasing trend over the last eight quarters, but the quarter-over-quarter change is -69.5% (from 115.0% to 35.1%); year-over-year change is not available. A high ROE at the 87th percentile signals strong profitability relative to peers, yet the sharp quarterly drop indicates recent earnings or equity changes that may temper that strength. The combination of a still-elevated level and a declining quarter-over-quarter trend suggests a recent loss of momentum, creating both opportunity if the decline is temporary and risk if it persists. This metric partially supports the overall CAUTIOUS verdict: the high percentile confirms past performance, but the steep quarterly fall reinforces caution about near-term sustainability.

Frequently Asked Questions

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

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

CPRI's Return on Equity (ROE) of 35.1% compares to a Consumer Cyclical sector median of 8.7%, placing it in the 87th percentile.

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

The closest Consumer Cyclical peers by Return on Equity (ROE) include: LI (-2.5%), XPEV (-3.6%), HMC (-3.8%), CROX (-6.1%), CZR (-10.7%).

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.