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', RMAX's return on equity was -3.1%, measuring profitability for shareholders. Industry average for Real Estate in '2021' stood at -7.8%.
• In '2022', RMAX's return on equity was 1.2%, measuring profitability for shareholders. The increase since '2021' reflects strengthening financial performance. Industry average for Real Estate in '2022' stood at 11.9%. Industry average increased by 19.8% compared to previous year.
• In '2023', RMAX's return on equity was -15.5%, measuring profitability for shareholders. The decline from '2022' may indicate some operational or financial challenges. Industry average for Real Estate in '2023' stood at 15.1%. Industry average increased by 3.2% compared to previous year.
• In '2024', RMAX's return on equity was 1.7%, measuring profitability for shareholders. The increase since '2023' reflects strengthening financial performance. Industry average for Real Estate in '2024' stood at -9.1%. Industry average declined by 24.2% from previous year.
Overall, RMAX'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.