TSCONEUTRAL

Return on Equity (ROE)

45.5%

Updated 32h ago

Sector Performance

90th percentile

TSCO

45.5%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

A Return on Equity (ROE) of 45.5% means that for every dollar of shareholder equity, the company generated $0.455 in profit over the past year — a measure of how efficiently it uses investor capital.

This far exceeds the sector median of 13.8%, placing the company in the 90th percentile among its peers, indicating top-tier profitability relative to the industry. However, the trend is not available: the year-over-year change, quarter-over-quarter change, and last eight quarters of data are all listed as N/A, and only a single historical value (45.5%) is provided. The combination of an extremely high ROE with no trend data leaves the investment risk and opportunity ambiguous — the strong level suggests potential, but the absence of direction makes it impossible to assess momentum. This metric supports the overall NEUTRAL verdict because while the ROE level is exceptionally strong, the lack of any trend information prevents a bullish or bearish tilt.

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: 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.