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', RVSN's return on equity was 122.7%, measuring profitability for shareholders. Industry average for Railroads in '2021' stood at 39.7%.
• In '2022', RVSN's return on equity was 33790.3%, measuring profitability for shareholders. The increase since '2021' reflects strengthening financial performance. Industry average for Railroads in '2022' stood at 46.1%. Industry average increased by 6.4% compared to previous year.
• In '2023', RVSN's return on equity was -201.7%, measuring profitability for shareholders. The decline from '2022' may indicate some operational or financial challenges. Industry average for Railroads in '2023' stood at -17.2%. Industry average declined by 63.3% from previous year.
• In '2024', RVSN's return on equity was -299.8%, measuring profitability for shareholders. The decline from '2023' may indicate some operational or financial challenges. Industry average for Railroads in '2024' stood at -33.3%. Industry average declined by 16.1% from previous year.
Overall, RVSN'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.