MHKNEUTRAL

MHK Return on Equity (ROE) Analysis

5.5%

Updated 6h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) measures how much profit a company generates from each dollar of shareholders’ equity; a 5.5% ROE means MHK earns $0.055 for every $1 of equity.

Sector Performance

24th percentile

MHK

5.5%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

5.1%(Jul 2026)

↑ Improving

📊

Deep Analysis

Return on equity (ROE) measures how much profit a company generates from each dollar of shareholders’ equity; a 5.5% ROE means MHK earns $0.055 for every $1 of equity.

That level sits well below the sector median of 13.3%, placing MHK at the 22th percentile among sector peers. The trend direction for the last 8 quarters is N/A, with year-over-year change also N/A, though quarter-over-quarter ROE rose 7.8% from 5.1% to 5.5%. The combination of a low ROE with a single-quarter improvement suggests modest ongoing pressure on profitability, while the positive QoQ move offers a small sign of stabilization. This metric neither confirms nor denies a bullish case, but it does highlight below-median capital efficiency. On balance, the weak absolute ROE and low peer ranking support the overall NEUTRAL verdict, especially given the limited trend data available.

Frequently Asked Questions

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

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 MHK's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: LOW (-67.1%), MAR (-69.0%), BMBL (-76.9%), WBA (-82.7%), NIO (-84.0%).

📚

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.