Fat Brands 8.25%(Fatbp) 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 FATBP 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', FATBP's return on equity was 145.8%, measuring profitability for shareholders. Industry average for Restaurants in '2021' stood at -6.8%.
• In '2022', FATBP's return on equity was 139.6%, measuring profitability for shareholders. The decline from '2021' may indicate some operational or financial challenges. Industry average for Restaurants in '2022' stood at -2.0%. Industry average increased by 4.8% compared to previous year.
• In '2023', FATBP's return on equity was 43.4%, measuring profitability for shareholders. The decline from '2022' may indicate some operational or financial challenges. Industry average for Restaurants in '2023' stood at 16.6%. Industry average increased by 18.6% compared to previous year.
• In '2024', FATBP's return on equity was 53.4%, measuring profitability for shareholders. The increase since '2023' reflects strengthening financial performance. Industry average for Restaurants in '2024' stood at 4.9%. Industry average declined by 11.7% from previous year.
Overall, FATBP's return on equity has been volatile but showed a downward trend over the past 4 years.
Formula: ROE = Net Income / Shareholders' Equity
Good Range: 10%-20% desirable for many industries.