CTASNEUTRAL

Return on Equity (ROE)

41.3%

Updated 438h ago

Sector Performance

89th percentile

CTAS

41.3%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

A return on equity (ROE) of 41.3% means that for every dollar of shareholder equity, the company generated $0.413 in profit over the past year — a measure of how efficiently it uses investor capital to produce earnings.

This is far above the sector median of 14.3%, placing CTAS in the 88th percentile among its peers, indicating well-above-average profitability. The year-over-year change is not available, but quarter over quarter the ROE rose by 6.7 percentage points from 38.7% to 41.3%, showing a recent improvement. The combination of an already high ROE level with a rising quarterly trend suggests that the company’s capital efficiency is strengthening, which lowers the risk of deteriorating returns. However, the overall NEUTRAL verdict reflects that this strong metric is balanced by other factors not captured here, such as valuation or growth concerns. This metric alone supports a more bullish stance, but it does not contradict the NEUTRAL rating given the broader context.

Frequently Asked Questions

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

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 CTAS'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.