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', OTLY's return on equity was -17.1%, measuring profitability for shareholders. Industry average for Packaged Foods in '2021' stood at 3.4%.
• In '2022', OTLY's return on equity was -38.6%, measuring profitability for shareholders. The decline from '2021' may indicate some operational or financial challenges. Industry average for Packaged Foods in '2022' stood at 7.7%. Industry average increased by 4.3% compared to previous year.
• In '2023', OTLY's return on equity was -74.1%, measuring profitability for shareholders. The decline from '2022' may indicate some operational or financial challenges. Industry average for Packaged Foods in '2023' stood at -8.8%. Industry average declined by 16.5% from previous year.
• In '2024', OTLY's return on equity was -92.1%, measuring profitability for shareholders. The decline from '2023' may indicate some operational or financial challenges. Industry average for Packaged Foods in '2024' stood at -36.9%. Industry average declined by 28.0% from previous year.
Overall, OTLY'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.