FTVNEUTRAL

Return on Equity (ROE)

6.8%

Updated 128h ago

Sector Performance

27th percentile

FTV

6.8%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how effectively a company generates profit from every dollar of shareholders' equity – a 6.8% ROE means for each $100 of equity, the company earned $6.80 in profit last year.

That level sits well below the sector median of 13.8%, placing FTV in the 27th percentile among its peers, indicating weaker profitability compared to most competitors. Because the year-over-year change and quarter-over-quarter change are both listed as N/A, there is no trend data available to assess whether performance is improving or deteriorating. Without any trend history, the single 6.8% reading offers a static snapshot of low profitability relative to the sector, which signals higher risk for investors seeking efficient capital use. This metric contradicts the overall NEUTRAL verdict, as a below-median ROE with no improving trend would typically warrant a more cautious stance, yet the verdict remains balanced by other factors not captured here.

Frequently Asked Questions

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

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 FTV'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.