RIONEUTRAL

Return on Equity (ROE)

16.4%

Higher than 57% of Basic Materials sector peers

Updated 151h ago

Sector Performance

57th percentile

RIO

16.4%

Sector Median

12.5%

Sector Avg

12.6%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders' equity – 16.4% means RIO earned $0.164 for every $1 of equity.

This sits above the Basic Materials sector median of 12.5%, placing RIO in the 57th percentile among its peers. The year-over-year change is not available, but the quarter-over-quarter change is +1.9%, with the most recent two quarterly values showing an uptick from 16.1% to 16.4%. While the level is above average and the short-term trend is positive, eight-quarter trend data is missing, limiting the ability to assess sustained performance. This combination suggests a modest current advantage but leaves open questions about durability, making it a neutral factor for risk or opportunity. The metric supports the overall NEUTRAL verdict because the ROE is decent but not exceptional enough to shift the balance.

Frequently Asked Questions

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

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

RIO's Return on Equity (ROE) of 16.4% compares to a Basic Materials sector median of 12.5%, placing it in the 57th percentile.

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

The closest Basic Materials peers by Return on Equity (ROE) include: MAG (12.5%), CDE (12.1%), RGLD (12.0%), AEM (18.0%), VALE (6.8%).

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.