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', LEG's return on equity was 24.4%, measuring profitability for shareholders. Industry average for Home Furnishings in '2021' stood at 18.2%.
• In '2022', LEG's return on equity was 18.8%, measuring profitability for shareholders. The decline from '2021' may indicate some operational or financial challenges. Industry average for Home Furnishings in '2022' stood at -0.3%. Industry average declined by 18.4% from previous year.
• In '2023', LEG's return on equity was -9.2%, measuring profitability for shareholders. The decline from '2022' may indicate some operational or financial challenges. Industry average for Home Furnishings in '2023' stood at 1.3%. Industry average increased by 1.6% compared to previous year.
• In '2024', LEG's return on equity was -50.6%, measuring profitability for shareholders. The decline from '2023' may indicate some operational or financial challenges. Industry average for Home Furnishings in '2024' stood at -16.5%. Industry average declined by 17.8% from previous year.
Overall, LEG'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.