MOHCAUTIOUS

Return on Equity (ROE)

4.5%

Updated 200h ago

Sector Performance

20th percentile

MOH

4.5%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates from each dollar of shareholders’ equity — a 4.5% ROE means MOH earns $0.045 for every $1 of equity.

That is far below the sector median of 13.8%, placing the company in the 20th percentile among peers, indicating weaker profitability relative to similar firms. The trend is not available — year-over-year and quarter-over-quarter changes are both listed as N/A, so there is no recent direction to assess. The combination of a very low ROE with no trend data means it is unclear whether performance is improving or deteriorating, adding uncertainty to the investment case. This weak level of ROE directly supports the overall CAUTIOUS verdict, as it signals below-average efficiency and return potential for shareholders.

Frequently Asked Questions

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

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 MOH'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.