SYKNEUTRAL

Return on Equity (ROE)

15.2%

Updated 54h ago

Sector Performance

54th percentile

SYK

15.2%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how efficiently a company generates profit from shareholders’ invested capital – a 15.2% ROE means Syk earned $0.152 for every dollar of equity.

The sector median is 14.2%, and Syk sits at the 53rd percentile among its peers, placing it slightly above average. Year-over-year change is not available, but quarter-over-quarter ROE improved by +4.8 percentage points. The combination of a level marginally above the sector median and a positive quarterly trend suggests modest earnings efficiency with no clear acceleration or deterioration. This metric supports the overall NEUTRAL verdict: the ROE is in line with peers and the slight uptick offers neither a strong risk nor a distinct opportunity.

Frequently Asked Questions

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

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 SYK'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.