TDGCAUTIOUS

Return on Equity (ROE)

-21.4%

Updated 1928h ago

Sector Performance

8th percentile

TDG

-21.4%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

# Return on Equity (ROE)

TDG's ROE of -21.4% indicates the company is losing money on shareholder investments rather than generating profits, meaning every dollar of equity is producing losses instead of returns. This performance ranks in the 9th percentile relative to sector peers, placing it well below the sector median of 13.5%—a gap of 34.9 percentage points that reflects substantially weaker profitability. The trend data shows ROE has remained flat at -21.4% over the last two quarters, suggesting the company has not improved its earnings relative to equity during this period. This negative ROE fundamentally undermines the company's ability to create shareholder value, presenting a material concern for investors evaluating capital allocation efficiency. The persistent losses and lack of improvement warrant careful scrutiny of the company's path to profitability before considering an investment position.

Frequently Asked Questions

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

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 TDG'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.