LCIDCAUTIOUS

LCID Return on Equity (ROE) Analysis

-97.6%

Higher than 7% of Consumer Cyclical sector peers

Updated 94h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) measures how much profit a company generates for each dollar of shareholders’ equity; a negative ROE means the company is losing money relative to its equity base.

Sector Performance

7th percentile

LCID

-97.6%

Sector Median

8.5%

Sector Avg

-20.0%

Prior Period

-376.1%(Jun 2026)

↑ Improving

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Deep Analysis

Return on equity (ROE) measures how much profit a company generates for each dollar of shareholders’ equity; a negative ROE means the company is losing money relative to its equity base.

LCID’s current ROE of -97.6% is far below the Consumer Cyclical sector median of 8.2%, placing it in the 7th percentile among peers — indicating extreme underperformance. The year-over-year change is not available (N/A), but the quarter-over-quarter change is +74.0%, reflecting a large reduction in the loss relative to the prior quarter. The combination of a deeply negative ROE level and a sharp quarterly improvement still leaves the company deeply unprofitable, suggesting ongoing high investment risk despite the temporary narrowing of losses. This metric strongly supports the CAUTIOUS verdict, as the persistently poor profitability relative to equity remains a clear warning for investors.

Frequently Asked Questions

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

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.

How does LCID's Return on Equity (ROE) compare to its sector?

LCID's Return on Equity (ROE) of -97.6% compares to a Consumer Cyclical sector median of 8.5%, placing it in the 7th percentile.

Who are LCID's closest peers by Return on Equity (ROE)?

The closest Consumer Cyclical peers by Return on Equity (ROE) include: KMX (3.6%), PVH (3.3%), APTV (1.8%), LI (-2.5%), HMC (-3.8%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

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.