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', ESOA's return on equity was -3.6%, measuring profitability for shareholders. Industry average for Water Sewer Pipeline Comm & Power Line Construction in '2021' stood at 12.2%.
• In '2022', ESOA's return on equity was 14.2%, measuring profitability for shareholders. The increase since '2021' reflects strengthening financial performance. Industry average for Water Sewer Pipeline Comm & Power Line Construction in '2022' stood at 15.2%. Industry average increased by 3.0% compared to previous year.
• In '2023', ESOA's return on equity was 23.6%, measuring profitability for shareholders. The increase since '2022' reflects strengthening financial performance. Industry average for Water Sewer Pipeline Comm & Power Line Construction in '2023' stood at 13.1%. Industry average declined by 2.1% from previous year.
• In '2024', ESOA's return on equity was 53.8%, measuring profitability for shareholders. The increase since '2023' reflects strengthening financial performance. Industry average for Water Sewer Pipeline Comm & Power Line Construction in '2024' stood at 17.0%. Industry average increased by 3.9% compared to previous year.
Overall, ESOA'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.