EDITCAUTIOUS

Return on Equity (ROE)

-326.1%

Higher than 0% of Healthcare sector peers

Updated 94h ago

Sector Performance

0th percentile

EDIT

-326.1%

Sector Median

11.0%

Sector Avg

31.7%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates with shareholders' money; a negative ROE like -326.1% means Editas is losing money, eroding rather than growing shareholder investment.

This is far below the Healthcare sector median of 11.0%, landing the company at the 0th percentile among its peers, indicating it is the worst performer in its group. The year-over-year change is not available, but quarter-over-quarter the ROE improved by +44.4%, moving from -586.6% to the current -326.1%. While the improvement is a positive step, the absolute ROE remains deeply negative, implying the company still faces high risk of continued losses and capital destruction. This combination of a very poor level and a recent but partial recovery does not create an attractive risk/reward opportunity. The metric strongly supports the CAUTIOUS verdict, as the massive negative ROE signals fundamental profitability issues that warrant caution.

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.

How does EDIT's Return on Equity (ROE) compare to its sector?

EDIT's Return on Equity (ROE) of -326.1% compares to a Healthcare sector median of 11.0%, placing it in the 0th percentile.

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

The closest Healthcare peers by Return on Equity (ROE) include: BIIB (7.7%), BDX (6.6%), ZBH (6.1%), TECH (5.3%), RVTY (3.2%).

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.