TROWNEUTRAL

Return on Equity (ROE)

18.7%

Updated 248h ago

Sector Performance

64th percentile

TROW

18.7%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how efficiently a company generates profit from its shareholders' equity — an 18.7% ROE means TROW earns $0.187 for every dollar of equity.

That figure sits above the sector median of 14.4%, placing TROW in the 63rd percentile among its peers. No year-over-year or quarter-over-quarter changes are available, and the trend over the last eight quarters is also not provided, so there is no basis to assess recent direction. Without a trend, the strong level relative to the sector alone suggests moderate profitability but offers no insight into stability or momentum. This combination of a high-but-not-top ROE with no trend data neither introduces a clear risk nor a compelling opportunity. The metric supports the overall NEUTRAL verdict because the above-average ROE is positive, yet the absence of trend information prevents a stronger 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: 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.