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', STGW's return on equity was 5.7%, measuring profitability for shareholders. Industry average for Advertising in '2021' stood at 10.8%.
• In '2022', STGW's return on equity was 4.6%, measuring profitability for shareholders. The decline from '2021' may indicate some operational or financial challenges. Industry average for Advertising in '2022' stood at -10.7%. Industry average declined by 21.5% from previous year.
• In '2023', STGW's return on equity was 0.0%, measuring profitability for shareholders. The decline from '2022' may indicate some operational or financial challenges. Industry average for Advertising in '2023' stood at 11.0%. Industry average increased by 21.7% compared to previous year.
• In '2024', STGW's return on equity was 0.7%, measuring profitability for shareholders. The increase since '2023' reflects strengthening financial performance. Industry average for Advertising in '2024' stood at 4.8%. Industry average declined by 6.2% from previous year.
Overall, STGW'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.