John Wiley & Sons(Wly) 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 WLY 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', WLY's return on equity was 13.6%, measuring profitability for shareholders. Industry average for Books in '2021' stood at 7.6%.
• In '2022', WLY's return on equity was 13.3%, measuring profitability for shareholders. The decline from '2021' may indicate some operational or financial challenges. Industry average for Books in '2022' stood at 9.7%. Industry average increased by 2.1% compared to previous year.
• In '2023', WLY's return on equity was 1.6%, measuring profitability for shareholders. The decline from '2022' may indicate some operational or financial challenges. Industry average for Books in '2023' stood at 4.9%. Industry average declined by 4.9% from previous year.
• In '2024', WLY's return on equity was -22.4%, measuring profitability for shareholders. The decline from '2023' may indicate some operational or financial challenges. Industry average for Books in '2024' stood at -8.2%. Industry average declined by 13.1% from previous year.
Overall, WLY'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.