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', GNE's return on equity was 23.7%, measuring profitability for shareholders. Industry average for Power Generation in '2021' stood at 6.1%.
• In '2022', GNE's return on equity was 56.6%, measuring profitability for shareholders. The increase since '2021' reflects strengthening financial performance. Industry average for Power Generation in '2022' stood at 5.6%. Industry average declined by 0.5% from previous year.
• In '2023', GNE's return on equity was 10.2%, measuring profitability for shareholders. The decline from '2022' may indicate some operational or financial challenges. Industry average for Power Generation in '2023' stood at -0.9%. Industry average declined by 6.5% from previous year.
• In '2024', GNE's return on equity was 6.5%, measuring profitability for shareholders. The decline from '2023' may indicate some operational or financial challenges. Industry average for Power Generation in '2024' stood at 18.5%. Industry average increased by 19.4% compared to previous year.
Overall, GNE'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.