Abcellera Biologics Common Shares(Abcl) Financials: Return On Equity Compared To Industry Average, Plus Other Key Ratios
Profitability Trend (Last 5 Years)
Profitability - return on equity
This chart shows the historical trend of return on equity for ABCL compared to its industry average over the recent years.
Ratio Definition and Interpretation
Name: Return on Equity (ROE)
Definition: ROE shows how much profit the company earns for its shareholders based on their invested equity. It’s one of the most watched profitability ratios. A consistently high ROE signals strong management and efficient use of shareholder capital. But artificially high ROE may sometimes be boosted by excessive debt.
Interpretation:
• In '2021', ABCL's return on equity was 15.0%, measuring profitability for shareholders. Industry average for Pharmaceuticals and Biotechnology in '2021' stood at -48.9%.
• In '2022', ABCL's return on equity was 14.0%, measuring profitability for shareholders. The decline from '2021' may indicate some operational or financial challenges. Industry average for Pharmaceuticals and Biotechnology in '2022' stood at -70.7%. Industry average declined by 21.8% from previous year.
• In '2023', ABCL's return on equity was -12.3%, measuring profitability for shareholders. The decline from '2022' may indicate some operational or financial challenges. Industry average for Pharmaceuticals and Biotechnology in '2023' stood at -288.3%. Industry average declined by 217.5% from previous year.
• In '2024', ABCL's return on equity was -14.8%, measuring profitability for shareholders. The decline from '2023' may indicate some operational or financial challenges. Industry average for Pharmaceuticals and Biotechnology in '2024' stood at -79.0%. Industry average increased by 209.3% compared to previous year.
Overall, ABCL's return on equity has been volatile but showed a downward trend over the past 4 years.
Formula: ROE = Net Income / Shareholders' Equity
Good Range: 10%-20% desirable for many industries.