QCOMCAUTIOUS

Return on Equity (ROE)

36.1%

Higher than 84% of Technology sector peers

Updated 533h ago

Sector Performance

84th percentile

QCOM

36.1%

Sector Median

8.7%

Sector Avg

2.7%

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Deep Analysis

QUALCOMM's Return on Equity (ROE) of 36.1% means that for every dollar of shareholder equity, the company generated 36.1 cents in net profit over the past year—a measure of how efficiently it uses investor capital.

That is far above the technology sector median of 6.5%, placing QUALCOMM in the 86th percentile among its peers, indicating well-above-average profitability compared to similar firms. The year-over-year change is not available, but the quarter-over-quarter change shows a sharp increase of +38.3% from the prior quarter's 26.1%. The combination of a very high current ROE level with a large positive quarterly swing suggests a recent acceleration in profit generation, which can signal reduced short-term risk, but the lack of a longer trend prevents full confidence in sustainability. This metric supports the overall NEUTRAL verdict—the exceptional ROE is a clear positive, yet the absence of a longer historical trend and the single quarter of data introduce enough uncertainty to avoid a stronger rating.

Frequently Asked Questions

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

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 QCOM's Return on Equity (ROE) compare to its sector?

QCOM's Return on Equity (ROE) of 36.1% compares to a Technology sector median of 8.7%, placing it in the 84th percentile.

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

The closest Technology peers by Return on Equity (ROE) include: GRAB (4.8%), WIT (15.4%), WIX (-13.8%), SMAR (-17.3%), U (-20.1%).

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.