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', GAIA's return on equity was 4.1%, measuring profitability for shareholders. Industry average for Movies/Entertainment in '2021' stood at -20.5%.
• In '2022', GAIA's return on equity was -4.5%, measuring profitability for shareholders. The decline from '2021' may indicate some operational or financial challenges. Industry average for Movies/Entertainment in '2022' stood at -32.4%. Industry average declined by 11.8% from previous year.
• In '2023', GAIA's return on equity was -6.8%, measuring profitability for shareholders. The decline from '2022' may indicate some operational or financial challenges. Industry average for Movies/Entertainment in '2023' stood at -43.8%. Industry average declined by 11.4% from previous year.
• In '2024', GAIA's return on equity was -6.3%, measuring profitability for shareholders. The increase since '2023' reflects strengthening financial performance. Industry average for Movies/Entertainment in '2024' stood at -136.5%. Industry average declined by 92.7% from previous year.
Overall, GAIA'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.