MSINEUTRAL

Return on Equity (ROE)

99.3%

Updated 8h ago

Sector Performance

97th percentile

MSI

99.3%

Sector Median

13.8%

Sector Avg

31.4%

📊

Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders’ equity — a 99.3% ROE means the company earns nearly 99 cents of profit for every dollar of equity, an exceptionally high figure.

This vastly exceeds the sector median of 13.8%, placing the company in the 97th percentile among its peers. The metric shows no trend data because the year-over-year change and quarter-over-quarter change are both listed as N/A, and only one historical value (99.3%) is available for the last eight quarters. The combination of an extremely high ROE level with an absent trend leaves the investment risk or opportunity unclear — the current profitability is outstanding, but without any directional change, you cannot assess whether it is sustainable or improving. This metric alone does not support or contradict the overall NEUTRAL verdict; while the level is strongly positive, the lack of trend data and the neutral stance suggest other factors likely offset this strength.

Frequently Asked Questions

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

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 MSI'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.