Trimas(Trs) 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 TRS 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', TRS's return on equity was 9.1%, measuring profitability for shareholders. Industry average for Industrial Specialties in '2021' stood at -12.9%.
• In '2022', TRS's return on equity was 10.3%, measuring profitability for shareholders. The increase since '2021' reflects strengthening financial performance. Industry average for Industrial Specialties in '2022' stood at -23.6%. Industry average declined by 10.7% from previous year.
• In '2023', TRS's return on equity was 6.0%, measuring profitability for shareholders. The decline from '2022' may indicate some operational or financial challenges. Industry average for Industrial Specialties in '2023' stood at -5.8%. Industry average increased by 17.8% compared to previous year.
• In '2024', TRS's return on equity was 3.6%, measuring profitability for shareholders. The decline from '2023' may indicate some operational or financial challenges. Industry average for Industrial Specialties in '2024' stood at -36.6%. Industry average declined by 30.8% from previous year.
Overall, TRS'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.