GDNEUTRAL

Return on Equity (ROE)

18.0%

Updated 54h ago

Sector Performance

62th percentile

18.0%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on equity (ROE) measures how much profit a company generates for each dollar of shareholders' equity, with 18.0% meaning GD earns $0.18 per $1 of equity.

This is above the sector median of 13.8%, placing GD in the 62th percentile among its sector peers. The metric shows no trend data because both the year-over-year change and quarter-over-quarter change are N/A, and there is no historical sequence beyond the single current value. The high level relative to peers suggests efficient use of equity, but the complete absence of trend information leaves uncertainty about whether performance is improving, stable, or declining. This combination of a strong current level with no directional evidence implies a neutral risk-opportunity profile: the company is performing well now, but investors cannot gauge momentum. The 18.0% ROE and its above-median position support a positive view, but the lack of trend data prevents a stronger stance, making it consistent with the overall NEUTRAL verdict.

Frequently Asked Questions

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

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 GD'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.