CZRCAUTIOUS

Return on Equity (ROE)

-10.7%

Higher than 23% of Consumer Cyclical sector peers

Updated 606h ago

Sector Performance

23th percentile

CZR

-10.7%

Sector Median

8.5%

Sector Avg

-18.9%

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Deep Analysis

Caesars Entertainment's current Return on Equity (ROE) of -10.7% means the company generated a net loss relative to the equity invested by shareholders — a negative return for every dollar of equity.

This sits well below the sector median of 8.6%, placing the company at the 26th percentile among Consumer Cyclical peers, indicating weaker profitability relative to most competitors. Trend data shows a year-over-year change that is not available, but quarter-over-quarter the ROE improved by +25.2% from -14.3% to -10.7% — a narrowing of losses. While the level remains deeply negative, the recent quarterly improvement suggests the company is moving toward a less unfavorable position, though the risk of continued negative returns persists. The combination of a negative ROE and a recent partial recovery implies high investment risk: the company is still destroying shareholder value, but the trend may signal a turning point that warrants monitoring. This metric directly supports the overall CAUTIOUS verdict, as a negative ROE far below the sector median contradicts any bullish case and highlights the need for caution.

Frequently Asked Questions

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

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

CZR's Return on Equity (ROE) of -10.7% compares to a Consumer Cyclical sector median of 8.5%, placing it in the 23th percentile.

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

The closest Consumer Cyclical peers by Return on Equity (ROE) include: PVH (3.3%), APTV (1.8%), DKNG (0.6%), LI (-2.5%), HMC (-3.8%).

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.