Ul Solutions(Uls) 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 ULS 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', ULS's return on equity was 9.7%, measuring profitability for shareholders. Industry average for Precision Instruments in '2021' stood at 4.5%.
• In '2022', ULS's return on equity was 17.4%, measuring profitability for shareholders. The increase since '2021' reflects strengthening financial performance. Industry average for Precision Instruments in '2022' stood at 1.9%. Industry average declined by 2.6% from previous year.
• In '2023', ULS's return on equity was 30.4%, measuring profitability for shareholders. The increase since '2022' reflects strengthening financial performance. Industry average for Precision Instruments in '2023' stood at 10.7%. Industry average increased by 8.8% compared to previous year.
• In '2024', ULS's return on equity was 41.9%, measuring profitability for shareholders. The increase since '2023' reflects strengthening financial performance. Industry average for Precision Instruments in '2024' stood at 16.7%. Industry average increased by 6.0% compared to previous year.
Overall, ULS'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.