Organigram Global Common Shares(Ogi) 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 OGI 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 '2020', OGI's return on equity was -45.5%, measuring profitability for shareholders. Industry average for Biotechnology: Pharmaceutical Preparations in '2020' stood at -45.5%.
• In '2021', OGI's return on equity was -33.5%, measuring profitability for shareholders. The increase since '2020' reflects strengthening financial performance. Industry average for Biotechnology: Pharmaceutical Preparations in '2021' stood at -45.2%. Industry average increased by 0.3% compared to previous year.
• In '2022', OGI's return on equity was -2.9%, measuring profitability for shareholders. The increase since '2021' reflects strengthening financial performance. Industry average for Biotechnology: Pharmaceutical Preparations in '2022' stood at -61.1%. Industry average declined by 15.9% from previous year.
• In '2024', OGI's return on equity was -14.8%, measuring profitability for shareholders. The decline from '2022' may indicate some operational or financial challenges. Industry average for Biotechnology: Pharmaceutical Preparations in '2024' stood at -68.0%. Industry average declined by 7.0% from previous year.
Overall, OGI's return on equity has been volatile but showed an upward trend over the past 4 years.

Formula: ROE = Net Income / Shareholders' Equity

Good Range: 10%-20% desirable for many industries.