IFFNEUTRAL

Return on Equity (ROE)

6.1%

Updated 414h ago

Sector Performance

24th percentile

IFF

6.1%

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 for each dollar of shareholders’ equity — a 6.1% ROE means IFF earned $0.061 for every dollar of equity last year.

This is well below the sector median of 14.3%, placing IFF in the 22nd percentile among its peers, indicating lower profitability relative to competitors. No trend data is available: the year-over-year change and quarter-over-quarter change are both listed as N/A, and only a single historical value of 6.1% is provided. Because the current ROE is low with no trend to assess improvement or deterioration, the level alone signals below-average efficiency, creating a risk that the company may struggle to generate returns comparable to its industry. This metric contradicts a neutral verdict — a sub‑median ROE in the bottom quarter of peers typically warrants caution, not neutrality.

Frequently Asked Questions

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

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 IFF'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.