RIVNCAUTIOUS

RIVN Return on Equity (ROE) Analysis

-65.7%

Higher than 13% of Consumer Cyclical sector peers

Updated 22h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholder equity, and a negative ROE means the company is losing money relative to its equity base.

Sector Performance

13th percentile

RIVN

-65.7%

Sector Median

8.5%

Sector Avg

-20.0%

Prior Period

-79.9%(Jun 2026)

↑ Improving

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholder equity, and a negative ROE means the company is losing money relative to its equity base.

RIVN's current ROE of -65.7% is well below the Consumer Cyclical sector median of 8.5%, placing it in the 13th percentile among peers — meaning 87% of sector firms have a higher ROE. The year-over-year change is not available, but the quarter-over-quarter change shows an improvement of +17.8%, moving from -79.9% to the current -65.7%. Although the ROE remains deeply negative, the sequential narrowing of losses suggests the company is reducing its burn rate, which tempers some risk. However, the combination of a very poor level relative to peers and only a single quarter of improvement still points to a high-risk investment profile, as profitability is far from being achieved. This metric directly contradicts the overall CAUTIOUS verdict, because a -65.7% ROE is far worse than what a cautious stance would typically tolerate.

Frequently Asked Questions

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

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

RIVN's Return on Equity (ROE) of -65.7% compares to a Consumer Cyclical sector median of 8.5%, placing it in the 13th percentile.

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

The closest Consumer Cyclical peers by Return on Equity (ROE) include: KMX (3.6%), PVH (3.3%), APTV (1.8%), LI (-2.5%), HMC (-3.8%).

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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.