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', HZO's return on equity was 26.1%, measuring profitability for shareholders. Industry average for Auto & Home Supply Stores in '2021' stood at -10.3%.
• In '2022', HZO's return on equity was 28.7%, measuring profitability for shareholders. The increase since '2021' reflects strengthening financial performance. Industry average for Auto & Home Supply Stores in '2022' stood at -64.9%. Industry average declined by 54.7% from previous year.
• In '2023', HZO's return on equity was 12.9%, measuring profitability for shareholders. The decline from '2022' may indicate some operational or financial challenges. Industry average for Auto & Home Supply Stores in '2023' stood at -39.2%. Industry average increased by 25.7% compared to previous year.
• In '2024', HZO's return on equity was 4.0%, measuring profitability for shareholders. The decline from '2023' may indicate some operational or financial challenges. Industry average for Auto & Home Supply Stores in '2024' stood at -44.1%. Industry average declined by 4.9% from previous year.
Overall, HZO'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.