Loar Holdings' ROE Falls Short of Industry Average

Loar Holdings (NYSE:LOAR) has a lower ROE of 5.5% compared to the average of 11% in the Aerospace & Defense industry. ROE measures a company's profitability in relation to its equity capital. While a low ROE is not always bad, it may indicate the company's inability to generate returns on investment. The use of debt can improve ROE, but the core economics of the business remain the same.