GISCAUTIOUS

Return on Equity (ROE)

23.6%

Updated 584h ago

Sector Performance

73th percentile

GIS

23.6%

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 ROE of 23.6% means the company earned $0.236 for every $1 of equity over the past year.

This is well above the sector median of 14.2%, placing the company in the 73rd percentile among its peers, indicating above-average profitability. The year-over-year change is not available, but the quarter-over-quarter change shows a decline of -5.2%, moving from 24.9% to the current 23.6%. The combination of a high ROE level with a recent downward quarterly trend suggests the company remains efficient, but the slippage warrants monitoring for potential pressure on returns. This mixed picture aligns with the overall NEUTRAL verdict — the metric does not strongly support a bullish or bearish stance on its own, as strong relative performance is tempered by a negative short-term change.

Frequently Asked Questions

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

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 GIS'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.