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', CHRW's return on equity was 41.8%, measuring profitability for shareholders. Industry average for Oil Refining/Marketing in '2021' stood at 27.5%.
• In '2022', CHRW's return on equity was 55.7%, measuring profitability for shareholders. The increase since '2021' reflects strengthening financial performance. Industry average for Oil Refining/Marketing in '2022' stood at 19.9%. Industry average declined by 7.6% from previous year.
• In '2023', CHRW's return on equity was 23.5%, measuring profitability for shareholders. The decline from '2022' may indicate some operational or financial challenges. Industry average for Oil Refining/Marketing in '2023' stood at -46.2%. Industry average declined by 66.1% from previous year.
• In '2024', CHRW's return on equity was 29.6%, measuring profitability for shareholders. The increase since '2023' reflects strengthening financial performance. Industry average for Oil Refining/Marketing in '2024' stood at -44.4%. Industry average increased by 1.8% compared to previous year.
Overall, CHRW'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.