Diversified Energy Plc Ordinary Shares(Dec) Financials: Return On Equity Compared To Industry Average, Plus Other Key Ratios
Profitability Trend (Last 5 Years)
Profitability - return on equity
This chart shows the historical trend of return on equity for DEC compared to its industry average over the recent years.
Ratio Definition and Interpretation
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', DEC's return on equity was -50.3%, measuring profitability for shareholders. Industry average for nan in '2021' stood at -10.0%.
• In '2022', DEC's return on equity was -252.8%, measuring profitability for shareholders. The decline from '2021' may indicate some operational or financial challenges. Industry average for nan in '2022' stood at 12.8%. Industry average increased by 22.8% compared to previous year.
• In '2023', DEC's return on equity was 350.0%, measuring profitability for shareholders. The increase since '2022' reflects strengthening financial performance. Industry average for nan in '2023' stood at 26.9%. Industry average increased by 14.1% compared to previous year.
• In '2024', DEC's return on equity was -17.0%, measuring profitability for shareholders. The decline from '2023' may indicate some operational or financial challenges. Industry average for nan in '2024' stood at -20.5%. Industry average declined by 47.4% from previous year.
Overall, DEC'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.