USBNEUTRAL

USB Return on Equity (ROE) Analysis

12.6%

Updated 81h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how efficiently a company generates profit from shareholders' invested capital; USB's 12.6% means it earns $12.60 for every $100 of equity.

Sector Performance

47th percentile

USB

12.6%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

12.4%(Jul 2026)

↑ Improving

📊

Deep Analysis

Return on Equity (ROE) measures how efficiently a company generates profit from shareholders' invested capital; USB's 12.6% means it earns $12.60 for every $100 of equity.

This sits below the sector median of 13.5%, placing USB at the 46th percentile among peers, so performance is slightly weaker than half the sector. The year-over-year change is not available, but quarter-over-quarter ROE rose by 1.6 percentage points, from 12.4% to 12.6%. This combination of a level just under the median with a recent upward move suggests moderate profitability that is improving, implying limited downside risk but no outsized opportunity. The metric supports the overall NEUTRAL verdict: ROE is close to peer norms, and the positive quarterly trend offsets the below-median position without tipping the stock into bullish or bearish territory.

Frequently Asked Questions

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

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 USB'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.