UPSNEUTRAL

Return on Equity (ROE)

33.4%

Updated 461h ago

Sector Performance

83th percentile

UPS

33.4%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how efficiently a company uses shareholder money to generate profit — a 33.4% ROE means UPS earns $33.40 in profit for every $100 of equity.

This result places UPS well above its sector peers, whose median ROE is 14.1%, and ranks the stock in the 84th percentile. The year-over-year change is not available, but the quarter-over-quarter movement shows a decline of 2.6% from the prior period’s 34.3%. Although the ROE level is high, the recent downward shift introduces a small risk that profitability may be eroding, though the drop is limited. This combination of a strong level with a modest quarterly dip does not clearly signal a major opportunity or a serious threat. The metric supports the NEUTRAL verdict: the high percentile rank is positive, but the slight quarterly decline prevents a clear bullish or bearish tilt.

Frequently Asked Questions

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

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 UPS'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.