MSNEUTRAL

Return on Equity (ROE)

16.4%

Updated 197h ago

Sector Performance

58th percentile

16.4%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how effectively a company generates profit from every dollar of shareholders’ equity — a 16.4% ROE means the company earned $0.164 for each $1 of equity over the trailing twelve months.

This surpasses the sector median of 13.5%, placing the company in the 58th percentile among its peers, indicating slightly above-average profitability efficiency. No year-over-year or quarter-over-quarter data is available, and no trend direction can be assessed over the last eight quarters, leaving the metric's trajectory unknown. The combination of a solid ROE level with an absent trend creates a neutral risk-opportunity profile: the current performance is acceptable but provides no signal of improvement or deterioration. This directly supports the overall NEUTRAL verdict, as the metric offers neither a clear bullish nor bearish edge beyond positioning the company modestly above its sector median.

Frequently Asked Questions

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

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 MS'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.