GOOGBULLISH

Return on Equity (ROE)

38.9%

Higher than 87% of Communication Services sector peers

Updated 272h ago

Sector Performance

87th percentile

GOOG

38.9%

Sector Median

14.7%

Sector Avg

18.3%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders' equity.

GOOG's current ROE of 38.9% means it earns $0.389 for every dollar of equity, well above the Communication Services sector median of 11.0%, placing it in the 88th percentile among peers. The year-over-year change is N/A, and the quarter-over-quarter change is also N/A, so no trend direction is available for the last eight quarters. With a very high ROE level but no trend data, the primary investment implication is an opportunity to benefit from strong current profitability, though the lack of historical change adds uncertainty about sustainability. This high ROE supports the overall BULLISH verdict because the company is generating exceptional returns on equity compared to its sector.

Frequently Asked Questions

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

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.

How does GOOG's Return on Equity (ROE) compare to its sector?

GOOG's Return on Equity (ROE) of 38.9% compares to a Communication Services sector median of 14.7%, placing it in the 87th percentile.

Who are GOOG's closest peers by Return on Equity (ROE)?

The closest Communication Services peers by Return on Equity (ROE) include: DIS (11.0%), T (18.4%), DASH (9.9%), YELP (20.4%), PINS (8.9%).

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.