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', DIS's return on equity was 2.2%, measuring profitability for shareholders. Industry average for Services-Misc. Amusement & Recreation in '2021' stood at 16.2%.
• In '2022', DIS's return on equity was 3.4%, measuring profitability for shareholders. The increase since '2021' reflects strengthening financial performance. Industry average for Services-Misc. Amusement & Recreation in '2022' stood at 15.1%. Industry average declined by 1.1% from previous year.
• In '2023', DIS's return on equity was 2.4%, measuring profitability for shareholders. The decline from '2022' may indicate some operational or financial challenges. Industry average for Services-Misc. Amusement & Recreation in '2023' stood at -29.0%. Industry average declined by 44.2% from previous year.
• In '2024', DIS's return on equity was 5.0%, measuring profitability for shareholders. The increase since '2023' reflects strengthening financial performance. Industry average for Services-Misc. Amusement & Recreation in '2024' stood at -41.5%. Industry average declined by 12.5% from previous year.
Overall, DIS'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.