Tal Education(Tal) Financials: Return On Equity Compared To Industry Average, Plus Other Key Ratios
Profitability Trend (Last 5 Years)
Profitability - return on equity
This chart shows the historical trend of return on equity for TAL compared to its industry average over the recent years.
Ratio Definition and Interpretation
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', TAL's return on equity was -2.2%, measuring profitability for shareholders. Industry average for Other Consumer Services in '2021' stood at -0.7%.
• In '2022', TAL's return on equity was -24.6%, measuring profitability for shareholders. The decline from '2021' may indicate some operational or financial challenges. Industry average for Other Consumer Services in '2022' stood at 0.5%. Industry average increased by 1.2% compared to previous year.
• In '2023', TAL's return on equity was -3.4%, measuring profitability for shareholders. The increase since '2022' reflects strengthening financial performance. Industry average for Other Consumer Services in '2023' stood at -12.3%. Industry average declined by 12.8% from previous year.
• In '2024', TAL's return on equity was -0.1%, measuring profitability for shareholders. The increase since '2023' reflects strengthening financial performance. Industry average for Other Consumer Services in '2024' stood at -3.6%. Industry average increased by 8.7% compared to previous year.
Overall, TAL's return on equity has been volatile but showed an upward trend over the past 4 years.
Formula: ROE = Net Income / Shareholders' Equity
Good Range: 10%-20% desirable for many industries.