HSICNEUTRAL

Return on Equity (ROE)

8.8%

Updated 560h ago

Sector Performance

33th percentile

HSIC

8.8%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how efficiently a company generates profit from each dollar of shareholders’ equity; the current 8.8% means HSIC earns $0.088 for every $1 of equity.

This sits below the sector median of 13.9%, placing HSIC in the 30th percentile among its peers. Year-over-year change is not available, but quarter-over-quarter ROE fell by 28.5% from 12.3% to 8.8%. The combination of a below-median ROE with a sharp quarterly decline points to deteriorating profitability relative to equity, increasing risk for investors seeking consistent returns. This metric contradicts the overall NEUTRAL verdict because the declining trend and weak peer standing suggest heightened downside risk rather than balanced opportunity.

Frequently Asked Questions

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

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 HSIC'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.