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', BN's return on equity was 8.6%, measuring profitability for shareholders. Industry average for Building operators in '2021' stood at -2.7%.
• In '2022', BN's return on equity was 4.6%, measuring profitability for shareholders. The decline from '2021' may indicate some operational or financial challenges. Industry average for Building operators in '2022' stood at 6.7%. Industry average increased by 9.4% compared to previous year.
• In '2023', BN's return on equity was 2.5%, measuring profitability for shareholders. The decline from '2022' may indicate some operational or financial challenges. Industry average for Building operators in '2023' stood at 2.4%. Industry average declined by 4.2% from previous year.
• In '2024', BN's return on equity was 1.4%, measuring profitability for shareholders. The decline from '2023' may indicate some operational or financial challenges. Industry average for Building operators in '2024' stood at 2.2%. Industry average declined by 0.2% from previous year.
Overall, BN'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.