<div id="readability-page-1"><div><p>Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE).  By way of learning-by-doing, we'll look at ROE to gain a better understanding of Carlisle Companies Incorporated (NYSE:CSL).</p><p> Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested.  In simpler terms, it measures the profitability of a company in relation to shareholder's equity. </p><p>AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.</p><h2> How Do You Calculate Return On Equity? </h2><p> <strong>Return on equity can be calculated by using the formula:</strong> </p><p> Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity </p><p>So, based on the above formula, the ROE for Carlisle Companies is:</p><p>39% = US$772m ÷ US$2.0b (Based on the trailing twelve months to September 2025).</p><p> The 'return' is the income the business earned over the last year.  One way to conceptualize this is that for each $1 of shareholders' capital it has, the company made $0.39 in profit. </p><p><span> See our latest analysis for Carlisle Companies </span></p> <h2> Does Carlisle Companies Have A Good ROE? </h2><p> One simple way to determine if a company has a good return on equity is to compare it to the average for its industry.  Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification.   As is clear from the image below, Carlisle Companies has a better ROE than the average (14%) in the Building industry. </p><figure><img height="632" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/asset/chart/258791-roe-1-dark-2/1766753284570?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="666" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/asset/chart/258791-roe-1-dark-2/1766753284570"/><figcaption>NYSE:CSL Return on Equity December 26th 2025</figcaption></figure><p> That's clearly a positive.     With that said, a high ROE doesn't always indicate high profitability.  A higher proportion of debt in a company's capital structure may also result in a high ROE, where the high debt levels could be a huge risk .  </p><h2> Why You Should Consider Debt When Looking At ROE </h2><p> Most companies need money -- from somewhere -- to grow their profits.  That cash can come from retained earnings, issuing new shares (equity), or debt.  In the case of the first and second options, the ROE will reflect this use of cash, for growth.  In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity.  Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking. </p><h2> Combining Carlisle Companies' Debt And Its 39% Return On Equity </h2><p> Carlisle Companies does use a high amount of debt to increase returns. It has a debt to equity ratio of 1.45.   While no doubt that its ROE is impressive, we would have been even more impressed had the company achieved this with lower debt.   Debt increases risk and reduces options for the company in the future, so you generally want to see some good returns from using it.   </p> <h2> Conclusion  </h2> <p> Return on equity is one way we can compare its business quality of different companies.  Companies that can achieve high returns on equity without too much debt are generally of good quality.  If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE. </p><p> But when a business is high quality, the market often bids it up to a price that reflects this.  Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider.   So I think it may be worth checking this <strong>free</strong> report on analyst forecasts for the company. </p><p> But note: <strong>Carlisle Companies may not be the best stock to buy</strong>. So take a peek at this <strong>free</strong> list of interesting companies with high ROE and low debt. </p><div><p>Mobile Infrastructure for Defense and Disaster</p><p>The next wave in robotics isn't humanoid. Its fully autonomous towers delivering 5G, ISR, and radar in under 30 minutes, anywhere.</p><p>Get the investor briefing before the next round of contracts</p><p><span>Sponsored On Behalf of CiTech</span></p></div></div></div>

<p>The article discusses Carlisle Companies Incorporated's (NYSE:CSL) Return on Equity (ROE) of 39%, which surpasses the industry average of 14%. It highlights that while the high ROE is impressive, it is achieved with a high debt to equity ratio of 1.45, which increases risk. The article concludes that companies with high ROE and low debt are generally of good quality, and suggests checking analyst forecasts and other companies with high ROE and low debt.</p>

Can Carlisle Companies Incorporated's (NYSE:CSL) ROE Continue To Surpass The Industry Average?