ZSCAUTIOUS

ZS Return on Equity (ROE) Analysis

-3.7%

Higher than 33% of Technology sector peers

Updated 192h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholder equity; a negative -3.7% means ZS is currently losing money relative to the capital investors have put in.

Sector Performance

33th percentile

-3.7%

Sector Median

6.8%

Sector Avg

-3.9%

Prior Period

-2.3%(May 2026)

↓ Declining

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Deep Analysis

This sits well below the technology sector median of 8.7%, placing ZS in the 31st percentile among its peers. Year-over-year change is not available, but the quarter-over-quarter change shows a decline of -60.9% from -2.3% to -3.7%. The combination of a negative ROE and this sharp drop implies elevated risk, as the company is not only underperforming its sector but also moving further into loss territory. This metric directly supports the overall CAUTIOUS verdict, since negative and deteriorating profitability undermines confidence in ZS's capital efficiency and long-term

Frequently Asked Questions

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

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 ZS's Return on Equity (ROE) compare to its sector?

ZS's Return on Equity (ROE) of -3.7% compares to a Technology sector median of 6.8%, placing it in the 33th percentile.

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

The closest Technology peers by Return on Equity (ROE) include: ANSS (9.5%), QRVO (10.1%), ARM (10.9%), ACLS (11.6%), MNDY (12.8%).

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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.