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', LPRO's return on equity was 91.9%, measuring profitability for shareholders. Industry average for Finance: Consumer Services in '2021' stood at 2.2%.
• In '2022', LPRO's return on equity was 35.8%, measuring profitability for shareholders. The decline from '2021' may indicate some operational or financial challenges. Industry average for Finance: Consumer Services in '2022' stood at -21.7%. Industry average declined by 23.9% from previous year.
• In '2023', LPRO's return on equity was 10.5%, measuring profitability for shareholders. The decline from '2022' may indicate some operational or financial challenges. Industry average for Finance: Consumer Services in '2023' stood at -4.3%. Industry average increased by 17.4% compared to previous year.
• In '2024', LPRO's return on equity was -95.2%, measuring profitability for shareholders. The decline from '2023' may indicate some operational or financial challenges. Industry average for Finance: Consumer Services in '2024' stood at -15.9%. Industry average declined by 11.6% from previous year.
Overall, LPRO'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.