WRKNEUTRAL

Return on Equity (ROE)

-16.4%

Updated 1928h ago

Sector Performance

9th percentile

WRK

-16.4%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

# Return on Equity Analysis - WRK

WRK's return on equity of -16.4% indicates the company is destroying shareholder value, generating losses rather than profits on equity invested in the business. This performance ranks in the 10th percentile among sector peers, well below the sector median of 13.5%—a 29.9 percentage point gap that reflects substantially worse capital efficiency compared to competitors. The trend shows no improvement, with the metric holding flat at -16.4% over the last two quarters, suggesting the company has not addressed underlying profitability challenges. For investors, negative ROE combined with peer underperformance signals weak operational execution and capital allocation, making the equity position risky until the company demonstrates a path back to profitability.

Frequently Asked Questions

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

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 WRK'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.