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', KXIN's return on equity was -662.7%, measuring profitability for shareholders. Industry average for Retail-Auto Dealers and Gas Stations in '2021' stood at -6.5%.
• In '2022', KXIN's return on equity was -277.8%, measuring profitability for shareholders. The increase since '2021' reflects strengthening financial performance. Industry average for Retail-Auto Dealers and Gas Stations in '2022' stood at 2.9%. Industry average increased by 9.4% compared to previous year.
• In '2023', KXIN's return on equity was -139.3%, measuring profitability for shareholders. The increase since '2022' reflects strengthening financial performance. Industry average for Retail-Auto Dealers and Gas Stations in '2023' stood at -22.8%. Industry average declined by 25.7% from previous year.
• In '2024', KXIN's return on equity was -139.5%, measuring profitability for shareholders. The decline from '2023' may indicate some operational or financial challenges. Industry average for Retail-Auto Dealers and Gas Stations in '2024' stood at -62.8%. Industry average declined by 40.1% from previous year.
Overall, KXIN's return on equity has been volatile but showed an upward trend over the past 4 years.

Formula: ROE = Net Income / Shareholders' Equity

Good Range: 10%-20% desirable for many industries.