KMBCAUTIOUS

Return on Equity (ROE)

111.7%

Updated 366h ago

Sector Performance

98th percentile

KMB

111.7%

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 every dollar of shareholders' equity — a 111.7% ROE means KMB earned $1.117 for each dollar of equity, an extremely high level.

Among sector peers, the median ROE is just 14.4%, placing KMB in the 98th percentile, far above most competitors. Trend data is not available: the year-over-year change and quarter-over-quarter change are both listed as N/A, so no direction can be inferred from recent history. The combination of an exceptionally high ROE with no trend information introduces uncertainty — such a level may reflect exceptional profitability, but it can also stem from very low equity (e.g., high leverage), which amplifies risk. This metric supports the overall CAUTIOUS verdict because an extreme outlier ROE like 111.7% demands deeper scrutiny rather than automatic confidence.

Frequently Asked Questions

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

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 KMB'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.