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', ZBAO's return on equity was 1601.6%, measuring profitability for shareholders. Industry average for Specialty Insurers in '2021' stood at 19.2%.
• In '2022', ZBAO's return on equity was 174.2%, measuring profitability for shareholders. The decline from '2021' may indicate some operational or financial challenges. Industry average for Specialty Insurers in '2022' stood at 33.1%. Industry average increased by 13.9% compared to previous year.
• In '2023', ZBAO's return on equity was -171.9%, measuring profitability for shareholders. The decline from '2022' may indicate some operational or financial challenges. Industry average for Specialty Insurers in '2023' stood at -9.8%. Industry average declined by 43.0% from previous year.
• In '2024', ZBAO's return on equity was 27.8%, measuring profitability for shareholders. The increase since '2023' reflects strengthening financial performance. Industry average for Specialty Insurers in '2024' stood at 20.9%. Industry average increased by 30.8% compared to previous year.
Overall, ZBAO'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.