CVXCAUTIOUS

Return on Equity (ROE)

6.6%

Updated 248h ago

Sector Performance

26th percentile

CVX

6.6%

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 shareholders’ money — a 6.6% ROE means CVX earns $0.066 for every dollar of equity.

This is well below the sector median of 13.8%, and at the 25th percentile among peers, CVX ranks in the bottom quarter of its industry for profitability. Trend data is not available: the year-over-year change is N/A, the quarter-over-quarter change is N/A, and the last eight quarters show no direction. A low ROE combined with no trend information suggests limited current efficiency but no clear deterioration or improvement, leaving uncertainty about future performance. This level of ROE supports the overall CAUTIOUS verdict, as the stock’s profitability lags most competitors without a visible path toward improvement.

Frequently Asked Questions

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

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 CVX'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.