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', CDNA's return on equity was -6.6%, measuring profitability for shareholders. Industry average for Medical Specialities in '2021' stood at -16.4%.
• In '2022', CDNA's return on equity was -17.1%, measuring profitability for shareholders. The decline from '2021' may indicate some operational or financial challenges. Industry average for Medical Specialities in '2022' stood at -15.5%. Industry average increased by 0.9% compared to previous year.
• In '2023', CDNA's return on equity was -55.0%, measuring profitability for shareholders. The decline from '2022' may indicate some operational or financial challenges. Industry average for Medical Specialities in '2023' stood at -93.8%. Industry average declined by 78.3% from previous year.
• In '2024', CDNA's return on equity was 16.4%, measuring profitability for shareholders. The increase since '2023' reflects strengthening financial performance. Industry average for Medical Specialities in '2024' stood at -31.2%. Industry average increased by 62.6% compared to previous year.
Overall, CDNA's return on equity has been volatile but showed an upward trend over the past 4 years.

Formula: ROE = Net Income / Shareholders' Equity

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