RMDNEUTRAL

Return on Equity (ROE)

25.2%

Updated 56h ago

Sector Performance

76th percentile

RMD

25.2%

Sector Median

13.8%

Sector Avg

31.4%

📊

Deep Analysis

Return on Equity (ROE) measures how efficiently a company generates profit from its shareholders' equity — a 25.2% means RMD earns $25.20 in profit for every $100 of equity.

This sits well above the sector median of 13.8%, placing RMD in the 76th percentile among its peers. No trend data is available: the year-over-year and quarter-over-quarter changes are both listed as N/A, and the last eight quarters show no history. The strong current ROE level alone suggests above-average profitability, but the absence of any trend makes it impossible to assess momentum or stability. Given the neutral overall verdict, this metric does not contradict it — the high level is a positive signal, but the lack of trend data prevents a more bullish conclusion.

Frequently Asked Questions

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

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

The closest peers by Return on Equity (ROE) include: MRNA (-36.6%), FICO (-37.3%), XRAY (-37.7%), VRSN (-38.3%), MSCI (-45.3%).

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.