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', CAH's return on equity was 34.1%, measuring profitability for shareholders. Industry average for Other Pharmaceuticals in '2021' stood at 64.1%.
• In '2022', CAH's return on equity was -173.4%, measuring profitability for shareholders. The decline from '2021' may indicate some operational or financial challenges. Industry average for Other Pharmaceuticals in '2022' stood at -86.8%. Industry average declined by 150.9% from previous year.
• In '2023', CAH's return on equity was -18.0%, measuring profitability for shareholders. The increase since '2022' reflects strengthening financial performance. Industry average for Other Pharmaceuticals in '2023' stood at 7.2%. Industry average increased by 94.0% compared to previous year.
• In '2024', CAH's return on equity was -27.6%, measuring profitability for shareholders. The decline from '2023' may indicate some operational or financial challenges. Industry average for Other Pharmaceuticals in '2024' stood at -31.1%. Industry average declined by 38.3% from previous year.
Overall, CAH'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.