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', NVST's return on equity was 8.4%, measuring profitability for shareholders. Industry average for Medical/Dental Instruments in '2021' stood at -17.3%.
• In '2022', NVST's return on equity was 5.9%, measuring profitability for shareholders. The decline from '2021' may indicate some operational or financial challenges. Industry average for Medical/Dental Instruments in '2022' stood at -44.7%. Industry average declined by 27.4% from previous year.
• In '2023', NVST's return on equity was -2.4%, measuring profitability for shareholders. The decline from '2022' may indicate some operational or financial challenges. Industry average for Medical/Dental Instruments in '2023' stood at -74.1%. Industry average declined by 29.3% from previous year.
• In '2024', NVST's return on equity was -31.5%, measuring profitability for shareholders. The decline from '2023' may indicate some operational or financial challenges. Industry average for Medical/Dental Instruments in '2024' stood at -45.9%. Industry average increased by 28.1% compared to previous year.
Overall, NVST'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.