NOWCAUTIOUS

Return on Equity (ROE)

16.1%

Higher than 0% of TECHNOLOGY sector peers

Updated 57h ago

Sector Performance

0th percentile

NOW

16.1%

Sector Median

25.2%

Sector Avg

24.5%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders' equity — a 16.1% ROE means NOW earns $0.161 for every $1 of equity.

That figure sits well below the sector median of 25.2%, placing NOW in the 0th percentile among TECHNOLOGY peers, meaning nearly all competitors have higher ROE. The trend data is not available: there is no year-over-year or quarter-over-quarter change to analyze, as only a single historical value (16.1%) was provided. Without a trend, investors cannot assess whether performance is improving or deteriorating, which increases uncertainty. The combination of a below-median ROE and no trend information implies elevated risk, as there is no evidence that the company is closing the gap with its sector. This metric directly supports the overall CAUTIOUS verdict because NOW's profitability efficiency is weak relative to peers and lacks any directional data to suggest a turnaround.

Frequently Asked Questions

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

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.

How does NOW's Return on Equity (ROE) compare to its sector?

NOW's Return on Equity (ROE) of 16.1% compares to a TECHNOLOGY sector median of 25.2%, placing it in the 0th percentile.

Who are NOW's closest peers by Return on Equity (ROE)?

The closest TECHNOLOGY peers by Return on Equity (ROE) include: CSCO (25.2%), TXN (32.3%).

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.