TXTNEUTRAL

TXT Return on Equity (ROE) Analysis

12.1%

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; 12.1% means TXT earns $0.121 per dollar of book equity.

Sector Performance

45th percentile

TXT

12.1%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

12.3%(Jul 2026)

↓ Declining

📊

Deep Analysis

Return on equity (ROE) measures how much profit a company generates for each dollar of shareholder equity; 12.1% means TXT earns $0.121 per dollar of book equity.

This sits below the sector median of 13.8%, placing TXT at the 44th percentile among peers, so its profitability is slightly weaker than typical. The metric's year-over-year change is not available, but quarter-over-quarter it declined by 1.6%, while the longer-term trend over the last eight quarters is also not available. The level is modestly below the sector norm and the quarterly decline adds a cautionary note, yet the data is too sparse to call it a major risk. This metric supports the overall NEUTRAL verdict because TXT's ROE is neither a standout positive nor a clear red flag relative to its sector.

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: LOW (-67.1%), MAR (-69.0%), BMBL (-76.9%), WBA (-82.7%), NIO (-84.0%).

📚

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.