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', NITO's return on equity was -74.4%, measuring profitability for shareholders. Industry average for Agricultural Chemicals in '2021' stood at -29.9%.
• In '2022', NITO's return on equity was -93.1%, measuring profitability for shareholders. The decline from '2021' may indicate some operational or financial challenges. Industry average for Agricultural Chemicals in '2022' stood at -32.7%. Industry average declined by 2.8% from previous year.
• In '2023', NITO's return on equity was -105.8%, measuring profitability for shareholders. The decline from '2022' may indicate some operational or financial challenges. Industry average for Agricultural Chemicals in '2023' stood at 12.9%. Industry average increased by 45.6% compared to previous year.
• In '2024', NITO's return on equity was -92.5%, measuring profitability for shareholders. The increase since '2023' reflects strengthening financial performance. Industry average for Agricultural Chemicals in '2024' stood at -57.9%. Industry average declined by 70.8% from previous year.
Overall, NITO'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.