MELI Return on Equity (ROE) Analysis
Updated 395h ago·SEC filings & market data
Key Takeaway
Return on equity (ROE) shows how much profit a company generates from each dollar of shareholder capital; MELI's current 27.5% means it earns $0.275 for every $1 of equity.
Sector Performance
80th percentileMELI
27.5%
Sector Median
13.2%
Sector Avg
16.4%
Prior Period
31.3%(Aug 2026)
Deep Analysis
Return on equity (ROE) shows how much profit a company generates from each dollar of shareholder capital; MELI's current 27.5% means it earns $0.275 for every $1 of equity.
This sits well above the sector median of 13.6%, placing the company in the 79th percentile among peers. The year-over-year change is N/A, but quarter-over-quarter ROE fell by 12.1% from 31.3% to 27.5%. The combination of a high level and a recent decline implies strong profitability that is currently losing momentum, presenting a risk of fading efficiency but not an immediate crisis. This mixed picture directly supports the overall NEUTRAL verdict: the metric's level argues for quality, while its quarterly drop argues for caution.
Frequently Asked Questions
What does the Return on Equity (ROE) tell investors about MELI?
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.
Learn More About Return on Equity (ROE)
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.
Master MELI's Valuation
Get the complete institutional research report covering all fundamental and technical metrics.
View full MELI research report →MELI
27.5%
Sector Median
13.2%
Sector Avg
16.4%
How MELI's Return on Equity (ROE) compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.