Everbright Digital Ordinary Shares(Edhl) 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 EDHL 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 '2022', EDHL's return on equity was 100.1%, measuring profitability for shareholders. Industry average for Advertising in '2022' stood at -10.7%.
• In '2023', EDHL's return on equity was 105.0%, measuring profitability for shareholders. The increase since '2022' reflects strengthening financial performance. Industry average for Advertising in '2023' stood at 11.0%. Industry average increased by 21.7% compared to previous year.
• In '2024', EDHL's return on equity was 22.1%, measuring profitability for shareholders. The decline from '2023' may indicate some operational or financial challenges. Industry average for Advertising in '2024' stood at 4.8%. Industry average declined by 6.2% from previous year.
Overall, EDHL's return on equity has been volatile but showed a downward trend over the past 3 years.
Formula: ROE = Net Income / Shareholders' Equity
Good Range: 10%-20% desirable for many industries.