GSNEUTRAL

Return on Equity (ROE)

14.5%

Updated 82h ago

Sector Performance

52th percentile

14.5%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how efficiently a company uses shareholders’ money to generate profit; a 14.5% ROE means Goldman Sachs earned $0.145 for every dollar of equity over the past year.

That figure lands just above the sector median of 13.7%, placing the firm in the 52nd percentile among its peers—slightly above average but not a standout. Year-over-year change is not available, but the quarter-over-quarter change shows a +5.8% improvement, and the available two-quarter history (14.5% vs. 13.7%) indicates a recent uptick. The combination of a near‑median ROE with a positive quarterly move suggests a manageable risk profile with modest upside potential, though the lack of a longer trend limits confidence. This metric supports the overall NEUTRAL verdict: the ROE is neither weak enough to raise alarm nor strong enough to signal compelling opportunity, aligning with a balanced outlook.

Frequently Asked Questions

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

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 GS'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.