TROWNEUTRAL

TROW Return on Equity (ROE) Analysis

19.4%

Updated 57h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) measures how much profit a company generates from each dollar of shareholder equity; TROW's current 19.4% means it earns $0.194 per dollar of equity.

Sector Performance

66th percentile

TROW

19.4%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

18.7%(Jul 2026)

↑ Improving

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Deep Analysis

Return on equity (ROE) measures how much profit a company generates from each dollar of shareholder equity; TROW's current 19.4% means it earns $0.194 per dollar of equity.

That level sits above the sector median of 13.8%, placing TROW at the 65th percentile among peers. The metric's trend direction is N/A over the last eight quarters, with a year-over-year change of N/A and a quarter-over-quarter increase of +3.7%, moving from 18.7% to 19.4%. The high ROE relative to peers signals stronger efficiency, but the lack of a longer trend means you cannot confirm whether this is sustainable or a one-quarter improvement. This mix of strong current performance with limited trend data suggests moderate potential, not a clear edge or red flag. Overall, the ROE level supports a NEUTRAL verdict, since it confirms solid profitability without offering decisive evidence for a bullish or bearish stance.

Frequently Asked Questions

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

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 TROW'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.