HONCAUTIOUS

Return on Equity (ROE)

24.3%

Updated 392h ago

Sector Performance

74th percentile

HON

24.3%

Sector Median

13.8%

Sector Avg

31.4%

📊

Deep Analysis

Return on Equity (ROE) shows how much profit a company generates for each dollar of shareholders’ equity — 24.3% means HON earns about $0.24 for every $1 of equity.

This well exceeds the sector median of 14.2%, placing HON in the 74th percentile among its peers, indicating stronger profitability than most. However, the year-over-year and quarter-over-quarter changes are both listed as N/A, and the only available historical value is the current 24.3%, so no trend direction can be assessed. Without a trend, the combination of a high ROE level with unknown direction offers a solid starting point but leaves uncertainty about whether performance is improving or slipping. This single data point supports the overall CAUTIOUS verdict because a favorable ROE is tempered by the complete lack of trend data, making it difficult to judge momentum or stability.

Frequently Asked Questions

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

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 HON'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.