SCHWNEUTRAL

SCHW Return on Equity (ROE) Analysis

20.3%

Updated 902h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) measures how much profit a company generates for each dollar of shareholder equity, so 20.3% means the firm earns about $0.20 of profit per dollar of equity.

Sector Performance

68th percentile

SCHW

20.3%

Sector Median

13.2%

Sector Avg

16.4%

Prior Period

19.1%(Jul 2026)

↑ Improving
📊

Deep Analysis

Return on equity (ROE) measures how much profit a company generates for each dollar of shareholder equity, so 20.3% means the firm earns about $0.20 of profit per dollar of equity.

This sits above the sector median of 13.5%, placing the company at the 68th percentile among peers. The trend data is limited: the year-over-year change and eight-quarter history are N/A, but quarter-over-quarter ROE rose by 6.3% to 20.3% from 19.1%. The combination of a high ROE with only a single sequential increase suggests the company is performing well relative to peers, yet the lack of a longer trend leaves uncertainty about durability. This metric supports the NEUTRAL verdict: the strong level and modest recent improvement justify a positive tilt, but insufficient historical context prevents a more bullish stance.

Frequently Asked Questions

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

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.

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.

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SCHW

20.3%

Sector Median

13.2%

Sector Avg

16.4%

How SCHW's Return on Equity (ROE) compares to sector peers.

Not financial advice. Research tool only. Data may be delayed.