Ribbon Communications(Rbbn) 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 RBBN 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 '2021', RBBN's return on equity was -33.6%, measuring profitability for shareholders. Industry average for EDP Services in '2021' stood at 11.7%.
• In '2022', RBBN's return on equity was -18.8%, measuring profitability for shareholders. The increase since '2021' reflects strengthening financial performance. Industry average for EDP Services in '2022' stood at -31.0%. Industry average declined by 42.7% from previous year.
• In '2023', RBBN's return on equity was -13.6%, measuring profitability for shareholders. The increase since '2022' reflects strengthening financial performance. Industry average for EDP Services in '2023' stood at -31.6%. Industry average declined by 0.7% from previous year.
• In '2024', RBBN's return on equity was -12.7%, measuring profitability for shareholders. The increase since '2023' reflects strengthening financial performance. Industry average for EDP Services in '2024' stood at -34.2%. Industry average declined by 2.5% from previous year.
Overall, RBBN'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.