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', KLIC's return on equity was 33.5%, measuring profitability for shareholders. Industry average for Semiconductors in '2021' stood at 1.9%.
• In '2022', KLIC's return on equity was 37.9%, measuring profitability for shareholders. The increase since '2021' reflects strengthening financial performance. Industry average for Semiconductors in '2022' stood at 6.1%. Industry average increased by 4.3% compared to previous year.
• In '2023', KLIC's return on equity was 4.8%, measuring profitability for shareholders. The decline from '2022' may indicate some operational or financial challenges. Industry average for Semiconductors in '2023' stood at 4.2%. Industry average declined by 1.9% from previous year.
• In '2024', KLIC'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 Semiconductors in '2024' stood at -32.3%. Industry average declined by 36.5% from previous year.
Overall, KLIC'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.