CTSHNEUTRAL

CTSH Return on Equity (ROE) Analysis

14.9%

Updated 921h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how effectively a company generates profit from shareholders' money – 14.9% means CTSH earns roughly $14.90 for every $100 of equity.

Sector Performance

55th percentile

CTSH

14.9%

Sector Median

13.3%

Sector Avg

16.9%

📊

Deep Analysis

Return on Equity (ROE) measures how effectively a company generates profit from shareholders' money – 14.9% means CTSH earns roughly $14.90 for every $100 of equity.

This sits slightly above the sector median of 13.8%, placing the company at the 53rd percentile among its peers. The trend direction is N/A because both the year-over-year change and quarter-over-quarter change are not available, and the historical data only shows a single value of 14.9%. Without any trend information, the combination of a near-median level and no trend data makes the investment risk or opportunity unclear — there is no directional signal to suggest improvement or deterioration. The current ROE aligns with the overall NEUTRAL verdict, as it neither stands out as a strength nor a weakness compared to the sector.

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: LOW (-67.1%), MAR (-69.0%), BMBL (-76.9%), WBA (-82.7%), NIO (-84.0%).

📚

Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

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.