ETNCAUTIOUS

ETN Return on Equity (ROE) Analysis

20.8%

Updated 192h ago·SEC filings & market data

Key Takeaway

ETN's Return on Equity (ROE) of 20.8% means that for every dollar of shareholders' equity, the company generates $0.208 in profit – a measure of how efficiently it uses investor capital.

Sector Performance

69th percentile

ETN

20.8%

Sector Median

13.9%

Sector Avg

32.1%

Prior Period

21.1%(Apr 2026)

↓ Declining

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Deep Analysis

ETN's Return on Equity (ROE) of 20.8% means that for every dollar of shareholders' equity, the company generates $0.208 in profit – a measure of how efficiently it uses investor capital.

This figure sits above the sector median of 13.8%, placing ETN in the 69th percentile among its peers, indicating above-average profitability relative to the industry. Trend data is not available: the year-over-year change, quarter-over-quarter change, and the direction over the last eight quarters are all marked as N/A, so no momentum can be assessed. The combination of a high current ROE with no trend information suggests the company currently delivers strong returns, but the lack of historical context prevents judgment on whether this performance is improving or weakening. This metric directly contradicts the overall CAUTIOUS verdict, as a 20.8% ROE well above the sector median typically signals a well-run, profitable business, whereas caution would be more warranted if returns were lower or declining.

Frequently Asked Questions

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

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

The closest peers by Return on Equity (ROE) include: WDC (85.9%), LVS (90.5%), IT (94.9%), KLAC (95.0%), ITW (96.8%).

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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.