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', AVY's return on equity was 38.5%, measuring profitability for shareholders. Industry average for Containers/Packaging in '2021' stood at 20.3%.
• In '2022', AVY's return on equity was 38.3%, measuring profitability for shareholders. The decline from '2021' may indicate some operational or financial challenges. Industry average for Containers/Packaging in '2022' stood at -11.5%. Industry average declined by 31.9% from previous year.
• In '2023', AVY's return on equity was 24.2%, measuring profitability for shareholders. The decline from '2022' may indicate some operational or financial challenges. Industry average for Containers/Packaging in '2023' stood at 21.9%. Industry average increased by 33.4% compared to previous year.
• In '2024', AVY's return on equity was 31.8%, measuring profitability for shareholders. The increase since '2023' reflects strengthening financial performance. Industry average for Containers/Packaging in '2024' stood at 16.1%. Industry average declined by 5.8% from previous year.
Overall, AVY'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.