ECLNEUTRAL

Return on Equity (ROE)

22.4%

Updated 56h ago

Sector Performance

71th percentile

ECL

22.4%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how effectively a company uses shareholders' investments to generate profit — an ROE of 22.4% means ECL earns about $0.224 for every dollar of equity.

This outperforms the sector median of 13.8%, placing ECL in the 71st percentile among its peers, indicating above-average profitability relative to the industry. However, the trend is unavailable: year-over-year and quarter-over-quarter changes are both marked N/A, and only a single data point (22.4%) is provided, so no directional insight can be drawn. With a strong level but no trend data, the investment risk is unclear — the high ROE suggests efficient operations, but the lack of historical context means you cannot assess whether this performance is stable or deteriorating. This metric supports the overall NEUTRAL verdict because the positive level is tempered by the absence of trend information, preventing a more decisive bullish or bearish stance.

Frequently Asked Questions

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

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 ECL'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.