SWKNEUTRAL

SWK Return on Equity (ROE) Analysis

6.9%

Updated 33h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) measures how much profit a company generates for every dollar of shareholder equity — a 6.9% ROE means SWK earns $0.069 for each $1 of invested equity.

Sector Performance

27th percentile

SWK

6.9%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

4.2%(Jul 2026)

↑ Improving

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Deep Analysis

Return on equity (ROE) measures how much profit a company generates for every dollar of shareholder equity — a 6.9% ROE means SWK earns $0.069 for each $1 of invested equity.

That figure sits well below the sector median of 13.4%, placing SWK in the 25th percentile among peers, so a typical competitor generates roughly twice the return on equity. Trend data is limited: the year-over-year change is N/A, but the quarter-over-quarter change shows a sharp +64.3% increase from 4.2% to 6.9%. The combination of a low ROE level with a recent strong quarterly improvement suggests current profitability is weak but may be recovering, creating a watch-and-see risk rather than a clear opportunity. This mixed picture — below-median performance with positive momentum — directly supports the overall NEUTRAL verdict, as the metric neither confirms strong health nor signals deterioration.

Frequently Asked Questions

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

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 SWK'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.