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', CVGW's return on equity was -5.2%, measuring profitability for shareholders. Industry average for Specialty Foods in '2021' stood at 11.0%.
• In '2022', CVGW's return on equity was -2.8%, measuring profitability for shareholders. The increase since '2021' reflects strengthening financial performance. Industry average for Specialty Foods in '2022' stood at 15.4%. Industry average increased by 4.4% compared to previous year.
• In '2023', CVGW's return on equity was -3.9%, measuring profitability for shareholders. The decline from '2022' may indicate some operational or financial challenges. Industry average for Specialty Foods in '2023' stood at 10.0%. Industry average declined by 5.4% from previous year.
• In '2024', CVGW's return on equity was -0.5%, measuring profitability for shareholders. The increase since '2023' reflects strengthening financial performance. Industry average for Specialty Foods in '2024' stood at 11.3%. Industry average increased by 1.2% compared to previous year.
Overall, CVGW'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.