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', STZ's return on equity was -0.3%, measuring profitability for shareholders. Industry average for Beverages (Production/Distribution) in '2022' stood at -18.5%.
• In '2023', STZ's return on equity was -0.7%, measuring profitability for shareholders. The decline from '2022' may indicate some operational or financial challenges. Industry average for Beverages (Production/Distribution) in '2023' stood at -14.5%. Industry average increased by 4.0% compared to previous year.
• In '2024', STZ's return on equity was 19.0%, measuring profitability for shareholders. The increase since '2023' reflects strengthening financial performance. Industry average for Beverages (Production/Distribution) in '2024' stood at -31.6%. Industry average declined by 17.0% from previous year.
• In '2025', STZ's return on equity was -1.0%, measuring profitability for shareholders. The decline from '2024' may indicate some operational or financial challenges. Industry average for Beverages (Production/Distribution) in '2025' stood at -1.0%. Industry average increased by 30.6% compared to previous year.
Overall, STZ's return on equity has been volatile but generally stable over the past 4 years.

Formula: ROE = Net Income / Shareholders' Equity

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