Modine Manufacturing(Mod) 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 MOD 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', MOD's return on equity was 18.9%, measuring profitability for shareholders. Industry average for Auto Parts:O.E.M. in '2022' stood at -23.7%.
• In '2023', MOD's return on equity was 29.3%, measuring profitability for shareholders. The increase since '2022' reflects strengthening financial performance. Industry average for Auto Parts:O.E.M. in '2023' stood at -8.3%. Industry average increased by 15.5% compared to previous year.
• In '2024', MOD's return on equity was 24.1%, measuring profitability for shareholders. The decline from '2023' may indicate some operational or financial challenges. Industry average for Auto Parts:O.E.M. in '2024' stood at -2.9%. Industry average increased by 5.3% compared to previous year.
• In '2025', MOD's return on equity was 22.2%, measuring profitability for shareholders. The decline from '2024' may indicate some operational or financial challenges. Industry average for Auto Parts:O.E.M. in '2025' stood at 20.0%. Industry average increased by 22.9% compared to previous year.
Overall, MOD'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.