MCONEUTRAL

Return on Equity (ROE)

71.4%

Updated 318h ago

Sector Performance

94th percentile

MCO

71.4%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

With a current Return on Equity (ROE) of 71.4%, the company generates $0.714 in profit for every dollar of shareholder equity — a measure of how efficiently it uses investors’ capital.

That level far exceeds the sector median of 13.9%, placing MCO in the 94th percentile among its peers. The year-over-year change, quarter-over-quarter change, and trend direction over the last eight quarters are all not available, so no trend data can be assessed. This combination of an extremely high ROE with no available trend makes it unclear whether the performance is sustainable or a one-time event. The metric supports the overall NEUTRAL verdict: the high ROE signals strong current profitability, but the absence of trend information introduces uncertainty about future consistency.

Frequently Asked Questions

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

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 MCO'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.