USBNEUTRAL

Return on Equity (ROE)

12.4%

Updated 248h ago

Sector Performance

46th percentile

USB

12.4%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how effectively a company generates profit from each dollar of shareholders' equity.

USB’s current ROE of 12.4% means it earns $0.124 for every $1 of equity, a return that trails the sector median of 13.8% and places USB at the 46th percentile among its sector peers. The available data shows no trend direction, as the year-over-year change and quarter-over-quarter change are both reported as N/A, with only a single historical value of 12.4% provided. Without a trend, the combination of a level below the sector median suggests limited competitive advantage in profit generation, but the percentile rank near the middle indicates USB is not an outlier. This metric supports the overall NEUTRAL verdict because the ROE is neither strongly above peers nor showing clear momentum, aligning with a balanced risk-and-opportunity profile.

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: 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.