ELVNEUTRAL

Return on Equity (ROE)

12.1%

Updated 392h ago

Sector Performance

44th percentile

ELV

12.1%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

ELV’s current Return on Equity (ROE) of 12.1% means that for every dollar of shareholder equity, the company generated 12.1 cents in profit over the past 12 months — a measure of how efficiently it uses investors’ money.

This sits below the sector median of 13.8%, placing the company in the 44th percentile among its peers. The year-over-year change is unavailable, but the quarter-over-quarter change shows a 6.2% decline, from 12.9% to 12.1%. With ROE below the midpoint of the sector and a negative quarterly trend, there is a moderate risk that profitability relative to equity is weakening, though the decline is limited to a single quarter’s data. This performance does not contradict the overall NEUTRAL verdict; it aligns with a view that the stock offers no strong advantage or disadvantage on this metric given its below-median level and recent slip.

Frequently Asked Questions

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

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 ELV'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.