PODDNEUTRAL

Return on Equity (ROE)

23.0%

Updated 8h ago

Sector Performance

72th percentile

PODD

23.0%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how efficiently a company generates profit from its shareholders' equity – a 23.0% ROE means PODD earns $0.23 for every $1 of equity.

This ratio is notably higher than the sector median of 13.8%, placing PODD in the 72nd percentile among its peers, meaning it outperforms most in its industry. The trend direction, year-over-year change, and quarter-over-quarter change are all listed as N/A, so no data is available to assess whether the metric is improving or deteriorating. A strong ROE level combined with an absent trend creates a mixed picture: the current performance indicates efficient capital use, but the lack of historical changes introduces uncertainty about its sustainability. This metric alone does not contradict the overall NEUTRAL verdict – the high relative ROE is a positive sign, but without trend data it cannot shift the rating to bullish or bearish.

Frequently Asked Questions

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

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 PODD'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.