MACAUTIOUS

Return on Equity (ROE)

232.1%

Updated 464h ago

Sector Performance

98th percentile

MA

232.1%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

The current Return on Equity (ROE) of 232.1% means that for every dollar of shareholders’ equity, the company generated $2.32 in net income over the past year—a measure of how efficiently it uses investor capital to produce profit.

This figure far exceeds the sector median of 14.1%, placing the company in the 99th percentile among its peers. A year-over-year change is unavailable, but the quarter-over-quarter change of +19.9% shows ROE increased sharply from the prior period’s 193.5%. While the absolute level is exceptionally high, the upward trend indicates improving profitability, but such extreme ROE can be inflated by thin equity bases (e.g., from debt or buybacks), which may amplify risk if earnings falter. The combination of a sky-high level and rising trend suggests an opportunity if the quality of earnings is sustainable, but it also raises caution about potential leverage effects. This metric supports the NEUTRAL verdict because a single outlier ratio, though impressive, does not override overall uncertainty—especially when the underlying equity base may be unusually small.

Frequently Asked Questions

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

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 MA'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.

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MA

232.1%

Sector Median

13.8%

Sector Avg

31.4%

How MA's Return on Equity (ROE) compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.