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', GPRE's return on equity was -6.9%, measuring profitability for shareholders. Industry average for Major Chemicals in '2021' stood at 18.5%.
• In '2022', GPRE's return on equity was -13.7%, measuring profitability for shareholders. The decline from '2021' may indicate some operational or financial challenges. Industry average for Major Chemicals in '2022' stood at 7.5%. Industry average declined by 11.0% from previous year.
• In '2023', GPRE's return on equity was -10.7%, measuring profitability for shareholders. The increase since '2022' reflects strengthening financial performance. Industry average for Major Chemicals in '2023' stood at -3.3%. Industry average declined by 10.8% from previous year.
• In '2024', GPRE's return on equity was -9.7%, measuring profitability for shareholders. The increase since '2023' reflects strengthening financial performance. Industry average for Major Chemicals in '2024' stood at -2.9%. Industry average increased by 0.4% compared to previous year.
Overall, GPRE'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.