TAPCAUTIOUS

TAP Return on Equity (ROE) Analysis

-19.5%

Updated 6h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) measures the profit a company generates for each dollar of shareholders’ equity; at -19.5%, TAP is losing about 19.5 cents per dollar of equity, indicating unprofitable use of invested capital.

Sector Performance

9th percentile

TAP

-19.5%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

-18.1%(Aug 2026)

↓ Declining

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Deep Analysis

This sits far below the sector median of 13.8%, and at the 8th percentile among sector peers, meaning most competitors generate far better returns. The year-over-year change is not available, but the quarter-over-quarter change of -7.7% shows ROE fell from -18.1% to -19.5%, a further deterioration. A deeply negative ROE combined with a declining trend implies elevated risk of continued value destruction, not recovery. That level and trajectory directly support the overall CAUTIOUS verdict, as negative and worsening returns on equity are incompatible with a favorable outlook.

Frequently Asked Questions

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

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 TAP'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.