RGTICAUTIOUS

RGTI Return on Equity (ROE) Analysis

-57.1%

Higher than 8% of Technology sector peers

Updated 48h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders' equity; a negative ROE like -57.1% means Rigetti Computing is losing money relative to the equity invested.

Sector Performance

8th percentile

RGTI

-57.1%

Sector Median

6.8%

Sector Avg

-3.9%

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Deep Analysis

This figure sits far below the technology sector median of 6.8%, placing the company at the 8th percentile among its peers — meaning most competitors deliver positive returns. The year-over-year and quarter-over-quarter changes are both listed as N/A, so no trend data is available to assess recent direction. Combining a deeply negative ROE with no trend information suggests elevated investment risk, as the company is not generating returns on equity and the absence of historical data limits any analysis of improvement. This metric strongly supports the overall CAUTIOUS verdict, as the negative return and very low sector percentile indicate fundamental profitability challenges.

Frequently Asked Questions

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

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

RGTI's Return on Equity (ROE) of -57.1% compares to a Technology sector median of 6.8%, placing it in the 8th percentile.

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

The closest Technology peers by Return on Equity (ROE) include: ANSS (9.5%), QRVO (10.1%), ARM (10.9%), ACLS (11.6%), MNDY (12.8%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

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.