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', EZGO's return on equity was -10.4%, measuring profitability for shareholders. Industry average for Motor Vehicles in '2021' stood at -101.8%.
• In '2022', EZGO's return on equity was -21.9%, measuring profitability for shareholders. The decline from '2021' may indicate some operational or financial challenges. Industry average for Motor Vehicles in '2022' stood at 30.3%. Industry average increased by 132.1% compared to previous year.
• In '2023', EZGO's return on equity was -14.4%, measuring profitability for shareholders. The increase since '2022' reflects strengthening financial performance. Industry average for Motor Vehicles in '2023' stood at 11.1%. Industry average declined by 19.1% from previous year.
• In '2024', EZGO's return on equity was -11.9%, measuring profitability for shareholders. The increase since '2023' reflects strengthening financial performance. Industry average for Motor Vehicles in '2024' stood at -13.5%. Industry average declined by 24.7% from previous year.
Overall, EZGO's return on equity has been volatile but generally stable over the past 4 years.

Formula: ROE = Net Income / Shareholders' Equity

Good Range: 10%-20% desirable for many industries.