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 '2022', SOTK's return on equity was 18.5%, measuring profitability for shareholders. Industry average for Industrial Machinery/Components in '2022' stood at 2.8%.
• In '2023', SOTK's return on equity was 4.5%, measuring profitability for shareholders. The decline from '2022' may indicate some operational or financial challenges. Industry average for Industrial Machinery/Components in '2023' stood at -12.9%. Industry average declined by 15.7% from previous year.
• In '2024', SOTK's return on equity was 9.3%, measuring profitability for shareholders. The increase since '2023' reflects strengthening financial performance. Industry average for Industrial Machinery/Components in '2024' stood at -12.2%. Industry average increased by 0.7% compared to previous year.
• In '2025', SOTK's return on equity was 7.5%, measuring profitability for shareholders. The decline from '2024' may indicate some operational or financial challenges. Industry average for Industrial Machinery/Components in '2025' stood at 12.5%. Industry average increased by 24.8% compared to previous year.
Overall, SOTK'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.