TMONEUTRAL

Return on Equity (ROE)

13.5%

Higher than 57% of Healthcare sector peers

Updated 33h ago

Sector Performance

57th percentile

TMO

13.5%

Sector Median

8.9%

Sector Avg

37.1%

📊

Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders’ equity; at 13.5%, TMO earns $0.135 for every $1 of equity.

This is above the Healthcare sector median of 8.9% and places TMO in the 57th percentile among its sector peers, meaning it outperforms the typical company but is not among the top performers. The year-over-year change is not available, but the quarter-over-quarter change is +7.1%, indicating recent improvement from the prior value of 12.6%. The current level is above the sector median, and the positive quarterly trend suggests short-term momentum, yet the absence of a longer-term trend means the durability of this performance is uncertain. This combination implies a moderate opportunity, as the ROE is healthy but lacks the historical context to confirm a sustained competitive advantage. The metric supports the overall NEUTRAL verdict because the ROE is solid and improving quarter over quarter, but it does not stand out enough to justify an upgrade without more trend data.

Frequently Asked Questions

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

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.

How does TMO's Return on Equity (ROE) compare to its sector?

TMO's Return on Equity (ROE) of 13.5% compares to a Healthcare sector median of 8.9%, placing it in the 57th percentile.

Who are TMO's closest peers by Return on Equity (ROE)?

The closest Healthcare peers by Return on Equity (ROE) include: ZBH (6.1%), TECH (5.3%), RVTY (3.2%), BIO (2.5%), BEAM (-5.8%).

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.