TSCONEUTRAL

TSCO Return on Equity (ROE) Analysis

39.5%

Updated 57h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholder equity, so a 39.5% ROE means TSCO earns $0.395 for every $1 of equity invested.

Sector Performance

88th percentile

TSCO

39.5%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

45.5%(Jul 2026)

↓ Declining

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholder equity, so a 39.5% ROE means TSCO earns $0.395 for every $1 of equity invested.

That level is far above the sector median of 13.3%, placing TSCO in the 88th percentile among sector peers, indicating strong profitability relative to its industry. The trend data are incomplete: the year-over-year change is N/A, while the quarter-over-quarter change shows a decline of 13.2%, from 45.5% to 39.5% over the most recent periods. This combination—very high absolute ROE but falling recently—implies a continued competitive edge yet a possible loss of momentum, which raises some short-term risk even as the long-term opportunity remains intact. The metric partially supports the NEUTRAL verdict: the level justifies holding a solid position, but the negative quarterly shift cautions against adding exposure. Overall, this ROE data aligns with a balanced outlook rather than a clear bullish or bearish signal.

Frequently Asked Questions

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

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 TSCO'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.