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', PED's return on equity was -1.4%, measuring profitability for shareholders. Industry average for Oil & Gas Production in '2021' stood at 20.8%.
• In '2022', PED's return on equity was 3.0%, measuring profitability for shareholders. The increase since '2021' reflects strengthening financial performance. Industry average for Oil & Gas Production in '2022' stood at 42.4%. Industry average increased by 21.7% compared to previous year.
• In '2023', PED's return on equity was 1.7%, measuring profitability for shareholders. The decline from '2022' may indicate some operational or financial challenges. Industry average for Oil & Gas Production in '2023' stood at 32.9%. Industry average declined by 9.5% from previous year.
• In '2024', PED's return on equity was 16.0%, measuring profitability for shareholders. The increase since '2023' reflects strengthening financial performance. Industry average for Oil & Gas Production in '2024' stood at 28.3%. Industry average declined by 4.6% from previous year.
Overall, PED'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.