HDCAUTIOUS

Return on Equity (ROE)

128.4%

Updated 150h ago

Sector Performance

98th percentile

128.4%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

A Return on Equity (ROE) of 128.4% means the company generated $1.284 in net profit for every dollar of shareholders' equity — an extremely high profitability relative to the equity base.

This far exceeds the sector median of 13.7%, placing HD in the 98th percentile among its peers. Trend data is unavailable, as the year-over-year change, quarter-over-quarter change, and last 8 quarters are all marked N/A. The combination of an exceptionally high ROE with no trend information creates a mixed picture: the level signals strong current efficiency, but the absence of historical context limits the ability to assess sustainability. This metric contradicts the overall CAUTIOUS verdict, as an ROE near 128% typically indicates outstanding performance, though the lack of trend data means the risk of a sudden reversal cannot be evaluated.

Frequently Asked Questions

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

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 HD'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.