Netcapital Warrants(Ncplw) 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 NCPLW 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', NCPLW's return on equity was 10.4%, measuring profitability for shareholders. Industry average for Finance: Consumer Services in '2021' stood at 2.2%.
• In '2022', NCPLW's return on equity was 17.8%, measuring profitability for shareholders. The increase since '2021' reflects strengthening financial performance. Industry average for Finance: Consumer Services in '2022' stood at -21.7%. Industry average declined by 23.9% from previous year.
• In '2023', NCPLW's return on equity was 9.6%, 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', NCPLW's return on equity was -13.5%, 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, NCPLW'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.