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', BBDC's return on equity was 10.5%, measuring profitability for shareholders. Industry average for Diversified Financial Services in '2021' stood at 9.3%.
• In '2022', BBDC's return on equity was 0.5%, measuring profitability for shareholders. The decline from '2021' may indicate some operational or financial challenges. Industry average for Diversified Financial Services in '2022' stood at 5.8%. Industry average declined by 3.4% from previous year.
• In '2023', BBDC's return on equity was 10.7%, measuring profitability for shareholders. The increase since '2022' reflects strengthening financial performance. Industry average for Diversified Financial Services in '2023' stood at 9.6%. Industry average increased by 3.7% compared to previous year.
• In '2024', BBDC's return on equity was 9.2%, measuring profitability for shareholders. The decline from '2023' may indicate some operational or financial challenges. Industry average for Diversified Financial Services in '2024' stood at 8.3%. Industry average declined by 1.3% from previous year.
Overall, BBDC's return on equity has been volatile but generally stable over the past 4 years.

Formula: ROE = Net Income / Shareholders' Equity

Good Range: 10%-20% desirable for many industries.