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', JRI's return on equity was 15.7%, measuring profitability for shareholders. Industry average for Finance Companies in '2021' stood at 14.6%.
• In '2022', JRI's return on equity was -17.3%, measuring profitability for shareholders. The decline from '2021' may indicate some operational or financial challenges. Industry average for Finance Companies in '2022' stood at -13.2%. Industry average declined by 27.8% from previous year.
• In '2023', JRI's return on equity was 8.8%, measuring profitability for shareholders. The increase since '2022' reflects strengthening financial performance. Industry average for Finance Companies in '2023' stood at 4.0%. Industry average increased by 17.1% compared to previous year.
• In '2024', JRI's return on equity was 6.9%, measuring profitability for shareholders. The decline from '2023' may indicate some operational or financial challenges. Industry average for Finance Companies in '2024' stood at 11.3%. Industry average increased by 7.3% compared to previous year.
Overall, JRI'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.