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', HCC's return on equity was 17.3%, measuring profitability for shareholders. Industry average for Coal Mining in '2021' stood at 18.6%.
• In '2022', HCC's return on equity was 55.3%, measuring profitability for shareholders. The increase since '2021' reflects strengthening financial performance. Industry average for Coal Mining in '2022' stood at 62.8%. Industry average increased by 44.2% compared to previous year.
• In '2023', HCC's return on equity was 28.8%, measuring profitability for shareholders. The decline from '2022' may indicate some operational or financial challenges. Industry average for Coal Mining in '2023' stood at 41.7%. Industry average declined by 21.2% from previous year.
• In '2024', HCC's return on equity was 12.6%, measuring profitability for shareholders. The decline from '2023' may indicate some operational or financial challenges. Industry average for Coal Mining in '2024' stood at 3.1%. Industry average declined by 38.6% from previous year.
Overall, HCC'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.