EDITCAUTIOUS

EDIT Return on Equity (ROE) Analysis

-118.8%

Updated 179h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures net income relative to shareholders' equity; at -118.8%, the company is losing more than its entire equity base over the period.

Sector Performance

2th percentile

EDIT

-118.8%

Sector Median

13.3%

Sector Avg

17.0%

Prior Period

-326.1%(Aug 2026)

↑ Improving

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Deep Analysis

Return on Equity (ROE) measures net income relative to shareholders' equity; at -118.8%, the company is losing more than its entire equity base over the period.

This is far below the sector median of 13.6%, placing EDIT in the 2nd percentile among peers. The metric's trend is N/A for the last 8 quarters; year-over-year change is N/A, while quarter-over-quarter change is +63.6%, meaning the loss narrowed from -326.1% to -118.8%. The level shows severe value destruction, but the quarter-over-quarter improvement indicates some momentum in reducing losses. For investment risk, the combination of a deeply negative ROE and a cautious outlook suggests high financial risk despite the short-term improvement. This metric directly supports the CAUTIOUS verdict, as the company remains far from profitable and well below sector norms.

Frequently Asked Questions

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

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 EDIT's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: EVGO (-34.6%), LOW (-67.1%), MAR (-69.0%), BMBL (-76.9%), WBA (-82.7%).

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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.