Materialise Nv(Mtls) 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 MTLS 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 '2021', MTLS's return on equity was 5.7%, measuring profitability for shareholders. Industry average for Computer Software: Prepackaged Software in '2021' stood at 1.5%.
• In '2022', MTLS's return on equity was -0.9%, measuring profitability for shareholders. The decline from '2021' may indicate some operational or financial challenges. Industry average for Computer Software: Prepackaged Software in '2022' stood at -31.2%. Industry average declined by 32.7% from previous year.
• In '2023', MTLS's return on equity was 2.9%, measuring profitability for shareholders. The increase since '2022' reflects strengthening financial performance. Industry average for Computer Software: Prepackaged Software in '2023' stood at -23.0%. Industry average increased by 8.3% compared to previous year.
• In '2024', MTLS's return on equity was 5.5%, measuring profitability for shareholders. The increase since '2023' reflects strengthening financial performance. Industry average for Computer Software: Prepackaged Software in '2024' stood at -20.3%. Industry average increased by 2.7% compared to previous year.
Overall, MTLS'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.