MKCNEUTRAL

MKC Return on Equity (ROE) Analysis

24.7%

Updated 249h ago·SEC filings & market data

Key Takeaway

With a Return on Equity (ROE) of 24.7%, for every dollar of shareholder equity the company generated nearly 25 cents in profit—a measure of how efficiently it uses investors’ capital.

Sector Performance

76th percentile

MKC

24.7%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

25.3%(Jun 2026)

↓ Declining

📊

Deep Analysis

With a Return on Equity (ROE) of 24.7%, for every dollar of shareholder equity the company generated nearly 25 cents in profit—a measure of how efficiently it uses investors’ capital.

This stands well above the sector median of 13.8% and places MKC in the 75th percentile among its peers, indicating above-average profitability relative to the industry. The year-over-year change is not available, but the quarter-over-quarter change shows a decline of 2.4% from the prior quarter’s 25.3%. While the current high ROE suggests strong historical capital efficiency, the recent slight erosion hints at possible pressure on earnings or equity expansion. This combination of an elevated level with a modest downward trend introduces a watchful risk, as the outperformance may be narrowing. Overall, this metric supports the NEUTRAL verdict: the strong relative position is offset by the negative short-term movement, offering no clear bullish or bearish edge.

Frequently Asked Questions

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

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 MKC'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.