Bbb Foods Common Shares(Tbbb) 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 TBBB 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', TBBB's return on equity was 18.3%, measuring profitability for shareholders. Industry average for Food Chains in '2021' stood at -37.4%.
• In '2022', TBBB's return on equity was 12.3%, measuring profitability for shareholders. The decline from '2021' may indicate some operational or financial challenges. Industry average for Food Chains in '2022' stood at 21.0%. Industry average increased by 58.4% compared to previous year.
• In '2023', TBBB's return on equity was 6.6%, measuring profitability for shareholders. The decline from '2022' may indicate some operational or financial challenges. Industry average for Food Chains in '2023' stood at 7.7%. Industry average declined by 13.2% from previous year.
• In '2024', TBBB's return on equity was -111.5%, measuring profitability for shareholders. The decline from '2023' may indicate some operational or financial challenges. Industry average for Food Chains in '2024' stood at -5.8%. Industry average declined by 13.5% from previous year.
Overall, TBBB'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.