GENEUTRAL

Return on Equity (ROE)

45.4%

Updated 102h ago

Sector Performance

90th percentile

45.4%

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 — a 45.4% ROE means GE earns $0.454 for every $1 of equity.

That figure places GE at the 90th percentile among its sector peers, far above the sector median of 13.8%. The year-over-year change is not available, but the quarter-over-quarter change shows a decline of 2.6%, from 46.6% to the current 45.4%. A very high ROE paired with a small recent drop suggests the company remains highly efficient, though the slight erosion warrants monitoring for continued weakening. This combination supports the overall NEUTRAL verdict: the outstanding level offers a reason for optimism, but the downward quarterly tick keeps the outlook balanced rather than bullish.

Frequently Asked Questions

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

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 GE'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.