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', UNH's return on equity was 24.1%, measuring profitability for shareholders. Industry average for Medical Specialities in '2021' stood at -16.4%.
• In '2022', UNH's return on equity was 26.9%, measuring profitability for shareholders. The increase since '2021' reflects strengthening financial performance. Industry average for Medical Specialities in '2022' stood at -15.5%. Industry average increased by 0.9% compared to previous year.
• In '2023', UNH's return on equity was 26.9%, measuring profitability for shareholders. The decline from '2022' may indicate some operational or financial challenges. Industry average for Medical Specialities in '2023' stood at -93.8%. Industry average declined by 78.3% from previous year.
• In '2024', UNH's return on equity was 15.9%, measuring profitability for shareholders. The decline from '2023' may indicate some operational or financial challenges. Industry average for Medical Specialities in '2024' stood at -31.2%. Industry average increased by 62.6% compared to previous year.
Overall, UNH'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.