TAPCAUTIOUS

Return on Equity (ROE)

-18.1%

Updated 128h ago

Sector Performance

9th percentile

TAP

-18.1%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders’ equity — a negative ROE means the company is losing money relative to its equity base.

The current ROE of -18.1% is well below the sector median of 13.8%, placing the stock in the 8th percentile among sector peers. The year-over-year change is not available, but quarter-over-quarter the metric improved by 13.4 percentage points, moving from -20.9% to -18.1%. While the improvement is a positive sign, the ROE remains deeply negative, indicating ongoing profitability challenges. This combination of a very poor level with a modestly improving trend suggests elevated risk from continued losses, but also a chance that performance is stabilizing. The metric contradicts the overall NEUTRAL verdict, as a negative ROE at the 8th percentile typically warrants a more cautious view, though the recent improvement tempers that assessment.

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: 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.