KONEUTRAL

Return on Equity (ROE)

43.4%

Updated 152h ago

Sector Performance

89th percentile

43.4%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

The current Return on Equity (ROE) of 43.4% means that for every dollar of shareholders’ equity, the company generated $0.434 in profit over the past year — a measure of how efficiently it uses investor capital.

This figure far exceeds the sector median of 14.2%, placing the company in the 89th percentile among its peers, indicating top-tier profitability relative to competitors. The year-over-year change is not available, but the quarter-over-quarter change shows a 6.6% increase from 40.7% to 43.4%, suggesting improving performance in the most recent period. The combination of a very high ROE level with a recent upward trend points to strong current profitability, though such elevated returns can sometimes attract competition or reflect financial leverage that carries risk. This metric supports the overall NEUTRAL verdict — the ROE is clearly a strength, but the neutral stance likely reflects other factors or valuation concerns that prevent a more bullish outlook.

Frequently Asked Questions

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

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 KO'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.