Noble Plc A Ordinary Shares(Ne) 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 NE 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', NE's return on equity was 6.6%, measuring profitability for shareholders. Industry average for Oil & Gas Production in '2022' stood at 42.4%.
• In '2023', NE's return on equity was 12.8%, measuring profitability for shareholders. The increase since '2022' reflects strengthening financial performance. Industry average for Oil & Gas Production in '2023' stood at 32.9%. Industry average declined by 9.5% from previous year.
• In '2024', NE's return on equity was 10.5%, measuring profitability for shareholders. The decline from '2023' may indicate some operational or financial challenges. Industry average for Oil & Gas Production in '2024' stood at 28.3%. Industry average declined by 4.6% from previous year.
Overall, NE's return on equity has been volatile but showed an upward trend over the past 3 years.
Formula: ROE = Net Income / Shareholders' Equity
Good Range: 10%-20% desirable for many industries.