ZBHNEUTRAL

Return on Equity (ROE)

6.1%

Higher than 46% of Healthcare sector peers

Updated 369h ago

Sector Performance

46th percentile

ZBH

6.1%

Sector Median

8.9%

Sector Avg

37.1%

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Deep Analysis

Return on Equity (ROE) measures how efficiently a company generates profit from shareholders' money — a 6.1% ROE means ZBH earned $0.061 for every dollar of equity.

This sits below the Healthcare sector median of 11.3%, placing ZBH in the 44th percentile among peers. The year-over-year change is not available, but the quarter-over-quarter change shows a +8.9% improvement from the prior quarter's 5.6%. A ROE well below the sector median signals below-average profitability, while the sequential uptick suggests a short-term recovery in earnings efficiency. This combination of a low absolute level and a positive quarterly trend points to a modest opportunity if the improvement continues, but also carries risk if the gain proves temporary. The current metric supports the overall NEUTRAL verdict, as the weak sector standing keeps the stock from being an outperform, but the recent uptick prevents a clear negative signal.

Frequently Asked Questions

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

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.

How does ZBH's Return on Equity (ROE) compare to its sector?

ZBH's Return on Equity (ROE) of 6.1% compares to a Healthcare sector median of 8.9%, placing it in the 46th percentile.

Who are ZBH's closest peers by Return on Equity (ROE)?

The closest Healthcare peers by Return on Equity (ROE) include: TECH (5.3%), TMO (13.5%), RVTY (3.2%), BIO (2.5%), BEAM (-5.8%).

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.