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', SHW's return on equity was 76.5%, measuring profitability for shareholders. Industry average for RETAIL: Building Materials in '2021' stood at 19.5%.
• In '2022', SHW's return on equity was 72.9%, measuring profitability for shareholders. The decline from '2021' may indicate some operational or financial challenges. Industry average for RETAIL: Building Materials in '2022' stood at -61.8%. Industry average declined by 81.3% from previous year.
• In '2023', SHW's return on equity was 70.1%, measuring profitability for shareholders. The decline from '2022' may indicate some operational or financial challenges. Industry average for RETAIL: Building Materials in '2023' stood at -35.2%. Industry average increased by 26.6% compared to previous year.
• In '2024', SHW's return on equity was 69.0%, measuring profitability for shareholders. The decline from '2023' may indicate some operational or financial challenges. Industry average for RETAIL: Building Materials in '2024' stood at 21.5%. Industry average increased by 56.7% compared to previous year.
Overall, SHW's return on equity has consistently declined during the past 4 years.

Formula: ROE = Net Income / Shareholders' Equity

Good Range: 10%-20% desirable for many industries.