ISRGNEUTRAL

Return on Equity (ROE)

17.2%

Updated 654h ago

Sector Performance

60th percentile

ISRG

17.2%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

ISRG's return on equity of 16.0% means the company generates $0.16 in profit for every dollar of shareholder equity, indicating solid efficiency in converting shareholder capital into earnings.

This performance exceeds the sector median of 13.5%, placing ISRG at the 57th percentile among sector peers—a middle-of-the-pack position that suggests better-than-average profitability relative to equity but not exceptional performance. The trend over the last four quarters shows stability, with ROE holding flat at 16.0%, indicating consistent capital efficiency without improvement or deterioration. For investors, this steady mid-range ROE suggests ISRG manages shareholder capital competently but offers limited evidence of expanding operational leverage or improving returns on existing investments. The metric supports a neutral assessment, as the company neither stands out for exceptional capital productivity nor shows concerning trends in how effectively it deploys shareholder funds.

Frequently Asked Questions

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

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 ISRG'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.