RLNEUTRAL

RL Return on Equity (ROE) Analysis

37.5%

Updated 345h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how efficiently a company generates profit from shareholders' equity; RL's current ROE of 34.7% means it earns $0.347 for every dollar of equity.

Sector Performance

87th percentile

37.5%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

34.7%(Aug 2026)

↑ Improving

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Deep Analysis

Return on Equity (ROE) measures how efficiently a company generates profit from shareholders' equity; RL's current ROE of 34.7% means it earns $0.347 for every dollar of equity.

This is well above the consumer cyclical sector median of 8.5%, placing RL in the 85th percentile among its peers. The year-over-year change is not available, but the quarter-over-quarter change shows a +4.8% increase from 33.1% to 34.7% in the most recent period. A high ROE at an already elevated level that continues to rise suggests strong profitability but also raises the bar for future performance, creating potential downside risk if the trend reverses. This metric supports the overall NEUTRAL verdict: the impressive level and positive quarterly trend are strengths, but such a high ROE may already be priced in, limiting further upside opportunity.

Frequently Asked Questions

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

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 RL's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: LOW (-67.1%), MAR (-69.0%), BMBL (-76.9%), WBA (-82.7%), NIO (-84.0%).

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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.