CTSHNEUTRAL

Return on Equity (ROE)

14.9%

Updated 32h ago

Sector Performance

53th percentile

CTSH

14.9%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how efficiently a company generates profit from every dollar of shareholders’ equity.

CTSH’s current ROE of 14.9% sits slightly above the sector median of 13.8%, placing it in the 53rd percentile among peers. The year-over-year change, quarter-over-quarter change, and trend over the last eight quarters are all not available, so no directional movement can be assessed. Because the ROE is only marginally above the median and no trend data exists, the metric offers neither a clear risk nor a clear opportunity—it simply indicates average profitability relative to the sector. This neutral profile directly supports the overall NEUTRAL verdict on the stock, as the current ROE provides no reason to deviate from that stance.

Frequently Asked Questions

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

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 CTSH'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.