TXTNEUTRAL

Return on Equity (ROE)

12.3%

Updated 80h ago

Sector Performance

45th percentile

TXT

12.3%

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 shareholders' money: a 12.3% ROE means TXT earns $12.30 in net income for every $100 of equity.

This is below the sector median of 13.7%, placing TXT in the 45th percentile among its peers — meaning it performs worse than 55% of comparable companies. No trend data is available: year-over-year change is N/A and quarter-over-quarter change is N/A, so there is no basis to assess whether ROE is improving or deteriorating. The combination of a ROE below the sector median and a complete absence of trend information offers little insight into future performance, making the metric a neutral signal for risk or opportunity. This directly supports the overall NEUTRAL verdict, as the current level is slightly underwhelming but not alarming, and the lack of trend data prevents any directional bias.

Frequently Asked Questions

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

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 TXT'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.