TMONEUTRAL

TMO Return on Equity (ROE) Analysis

13.5%

Higher than 60% of Healthcare sector peers

Updated 1041h ago·SEC filings & market data

Key Takeaway

ROE, or Return on Equity, measures how efficiently a company generates profit from each dollar of shareholders’ equity, and the current 13.5% means TMO earns $0.135 for every $1 of equity invested.

Sector Performance

60th percentile

TMO

13.5%

Sector Median

10.1%

Sector Avg

75.0%

Prior Period

12.6%(May 2026)

↑ Improving

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Deep Analysis

ROE, or Return on Equity, measures how efficiently a company generates profit from each dollar of shareholders’ equity, and the current 13.5% means TMO earns $0.135 for every $1 of equity invested.

This sits above the sector median of 9.0%, placing TMO in the 62nd percentile among healthcare peers, so its profitability is better than most. However, no trend data is available: the year-over-year change is N/A, and the quarter-over-quarter change is also N/A, leaving the direction of recent performance unknown. The combination of a solid above-median level but absent trend data suggests a balanced risk profile—current strength is clear, yet there is no evidence of momentum or deterioration. This metric supports the overall NEUTRAL verdict: the level justifies no downgrade, but the missing trend prevents a more favorable call.

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 10.1%, placing it in the 60th percentile.

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

The closest Healthcare peers by Return on Equity (ROE) include: ALGN (10.1%), TECH (9.0%), BIIB (7.7%), ABT (12.5%), DGX (14.6%).

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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.