Return on equity consistency (ROE consistency)
Average return on equity divided by how much it varies.
A return that repeats is worth more than a return that averages the same.
How it is computed here
Mean return on equity / standard deviation of return on equity
Computed across several filed fiscal years. Filed under quality. Higher is the stronger reading, other things equal.
No published threshold exists for this figure, so this page prints none. Read it against the company's own history and its peers instead.
When it misleads
- A ratio, not a percentage. Capped at 10 when variation is effectively zero.
- Inherits every leverage problem in return on equity itself.
Questions
How is return on equity consistency calculated?
Mean return on equity / standard deviation of return on equity. Computed across several filed fiscal years.
What does return on equity consistency tell a value investor?
A return that repeats is worth more than a return that averages the same.
When does return on equity consistency mislead?
A ratio, not a percentage. Capped at 10 when variation is effectively zero. Inherits every leverage problem in return on equity itself.