Mesa Laboratories(Mlab) Financials: Return On Equity Compared To Industry Average, Plus Other Key Ratios
Profitability Trend (Last 5 Years)
Profitability - return on equity
This chart shows the historical trend of return on equity for MLAB compared to its industry average over the recent years.
Ratio Definition and Interpretation
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 '2022', MLAB's return on equity was 0.5%, measuring profitability for shareholders. Industry average for Industrial Machinery/Components in '2022' stood at 2.8%.
• In '2023', MLAB's return on equity was 0.2%, measuring profitability for shareholders. The decline from '2022' may indicate some operational or financial challenges. Industry average for Industrial Machinery/Components in '2023' stood at -12.9%. Industry average declined by 15.7% from previous year.
• In '2024', MLAB's return on equity was -94.4%, measuring profitability for shareholders. The decline from '2023' may indicate some operational or financial challenges. Industry average for Industrial Machinery/Components in '2024' stood at -12.2%. Industry average increased by 0.7% compared to previous year.
• In '2025', MLAB's return on equity was -1.3%, measuring profitability for shareholders. The increase since '2024' reflects strengthening financial performance. Industry average for Industrial Machinery/Components in '2025' stood at 12.5%. Industry average increased by 24.8% compared to previous year.
Overall, MLAB's return on equity has been volatile but generally stable over the past 4 years.
Formula: ROE = Net Income / Shareholders' Equity
Good Range: 10%-20% desirable for many industries.