GWWNEUTRAL

Return on Equity (ROE)

46.1%

Updated 366h ago

Sector Performance

90th percentile

GWW

46.1%

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 from each dollar of shareholders' equity — 46.1% means GWW earned $0.461 for every $1 of equity.

That is well above the sector median of 13.9%, placing GWW in the 90th percentile among its peers. Year-over-year change is not available, but quarter-over-quarter ROE rose by 11.9%, from 41.2% to 46.1%. The combination of a very high ROE and a recent quarterly increase suggests strong current profitability, though the lack of a longer trend limits visibility into sustainability. This metric supports the overall NEUTRAL verdict because the exceptional level is already reflected in the stock's valuation, while the upward quarter-over-quarter move does not clearly signal a decisive shift in risk or opportunity.

Frequently Asked Questions

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

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 GWW'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.