MHKNEUTRAL

Return on Equity (ROE)

5.1%

Updated 342h ago

Sector Performance

21th percentile

MHK

5.1%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how efficiently a company generates profit from shareholders' money.

MHK's current ROE of 5.1% means it earns $5.10 for every $100 of equity, which is well below the sector median of 14.1%, placing it in the 20th percentile among peers. The trend for this metric is not available because the year-over-year change and quarter-over-quarter change are both listed as N/A, and no directional data exists for the last eight quarters. With a weak current ROE and no trend information to assess improvement or deterioration, the investment risk is elevated relative to the sector. The low level alone suggests MHK may be less efficient at generating returns than most competitors. This metric contradicts the overall NEUTRAL verdict—it points toward a weaker-than-average financial performance, which would typically argue for a more cautious view.

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: 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.