Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.
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- Balance Sheet: Assets
- Analysis of Profitability Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Common Stock Valuation Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Capital Asset Pricing Model (CAPM)
- Selected Financial Data since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Sales (P/S) since 2005
- Analysis of Debt
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Two-Component Disaggregation of ROE
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
- Return on Assets (ROA)
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The Return on Assets metric shows a clear improvement trend over the analyzed periods. Initially, the company experienced significant negative returns, reaching a low of approximately -11.87% in December 2020. From early 2021 onward, ROA began to improve steadily, moving from negative values towards positive territory. By the first quarter of 2023, ROA became positive and continued to increase, maintaining a generally upward trajectory through 2025, with values fluctuating around 3.5% to 4.8%. This indicates a progressive enhancement in asset efficiency and profitability over the time frame.
- Financial Leverage
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Financial leverage exhibited considerable volatility throughout the timeline. Starting at a moderate ratio of 5.63 in the first quarter of 2020, leverage increased substantially, peaking at 19.05 in early 2022. This suggests a period of heightened reliance on debt or other borrowing relative to equity. From mid-2022 onward, there is a consistent downtrend in leverage, decreasing steadily to around 5.77 by mid-2025. The reduction in leverage indicates a potential strengthening of the balance sheet and decreasing financial risk as the company reduces reliance on debt financing.
- Return on Equity (ROE)
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The Return on Equity experienced extreme negative values during the early portions of the data, with ROE plunging below -100% between late 2020 and early 2021, reflecting significant losses relative to equity. However, starting in late 2021 and especially through 2022, ROE demonstrated a strong recovery, crossing into positive territory and eventually achieving peaks above 34% in the third quarter of 2023. Afterward, ROE displayed a slight decline but generally sustained elevated positive levels up to the end of the data period, fluctuating between approximately 24% and 29%. This recovery suggests a restoration of shareholder value and improving profitability relative to equity.
Three-Component Disaggregation of ROE
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
The data reveals several notable trends in profitability, efficiency, leverage, and overall returns over the observed periods.
- Net Profit Margin
- The net profit margin exhibited a severe negative position beginning in early 2020, with the lowest points around -63.43% in mid-2020. This reflects substantial losses during that period. Subsequently, there was a consistent and marked improvement in profitability, turning marginally positive by the end of 2022. From that point forward, the margin increased steadily, fluctuating between approximately 4.87% and 6.34% through the first quarter of 2025, indicating a restored and improving profitability trend.
- Asset Turnover
- Asset turnover data, available from early 2021 onwards, shows a positive progression. Starting from 0.26, the ratio experienced a general upward trend, reaching a peak of around 0.77 in mid-2024. Although there was a slight decline toward early 2025, the overall movement suggests improved efficiency in using assets to generate revenue over the analyzed timeframe.
- Financial Leverage
- Financial leverage ratios indicate a significant increase from 5.63 in early 2020 to a peak of approximately 19.05 in early 2022, implying a rapid growth in debt relative to equity or assets. However, following this peak, the leverage began a steady decline, falling back to around 5.77 by mid-2025. This reversal denotes deleveraging efforts and possibly improved financial stability in the latter periods.
- Return on Equity (ROE)
- The return on equity mirrored the challenging profitability scenario observed in net income margins, with extremely negative values through 2020 and 2021, bottoming near -129.12%. Improvement began in late 2021 and became more pronounced by 2022. By the first quarter of 2023, ROE had turned positive and reached values exceeding 30%, before stabilizing in the low-to-mid 20% range through 2025. This progression denotes a recovery in the company’s ability to generate returns from shareholders' equity.
In summary, the data indicates an initial period of significant financial distress affecting key profitability metrics and leverage. Over time, the company showed considerable recovery in profitability, asset utilization, and return on equity, accompanied by a strategic reduction in financial leverage, supporting enhanced financial health and operational efficiency.
Five-Component Disaggregation of ROE
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
The financial data reflects a trajectory of significant recovery and stabilization over the analyzed periods, following an initial phase of substantial losses and operational challenges.
- Tax Burden
- The tax burden ratio, available from late 2022 onwards, remains relatively stable, fluctuating narrowly around 0.74 to 0.77. This consistency suggests a steady effective tax rate without major fluctuations impacting net profitability.
- Interest Burden
- The interest burden ratio demonstrates a marked improvement over time. Early measurements indicate a highly negative ratio, suggestive of significant interest expense or financial distress. From late 2022 onward, the ratio improves consistently, turning positive and stabilizing between 0.66 and 0.79, indicative of improved earnings before interest and taxes relative to earnings before taxes.
- EBIT Margin
- The EBIT margin shows a dramatic shift from deeply negative values in early 2020, with losses exceeding 50%, to progressively improving margins reaching above 10% by late 2023. This positive trend evidences a recovery in core profitability and operational efficiency, maintaining margins near 10% into early 2025.
- Asset Turnover
- Asset turnover ratios start low in early periods, ranging from 0.17 to 0.29, then steadily increase through the timeline, peaking at approximately 0.77 in late 2024 and early 2025. The upward trend indicates increasingly effective use of assets to generate revenues, reflecting operational normalization and possible asset utilization improvements.
- Financial Leverage
- Financial leverage ratios begin at moderate levels (~5.63) but climb sharply, peaking near 19.05 in early 2022. Thereafter, a clear downward trend emerges, with leverage declining steadily to around 5.77 by mid-2025. This suggests a reduction in reliance on debt financing and a strengthening equity base over time, potentially lowering financial risk.
- Return on Equity (ROE)
- The ROE figures exhibit extreme volatility and initial substantial negative returns, with values dipping below -100% during 2020. A marked turnaround occurs post-2022, with ROE rising into positive territory and peaking near 34.6% in late 2023. Though experiencing some fluctuations, ROE remains generally strong thereafter, indicating enhanced profitability and effective capital utilization.
Overall, the data presents a narrative of recovery from severe financial distress, with key profitability and efficiency metrics improving significantly. Reduced financial leverage and stable tax burden further support a more resilient financial position. Operational performance gains, reflected in EBIT margins and asset turnover, align with improving returns on equity, suggesting sustainable progress over the reviewed periods.
Two-Component Disaggregation of ROA
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
- Net Profit Margin
- The net profit margin experienced significant volatility during the earlier periods, showing negative values from March 31, 2020, through June 30, 2021, with the lowest point at -63.43% in June 2020. Following this period of losses, there was a consistent improvement beginning in the second half of 2021. By March 31, 2022, the margin turned positive and continued to rise, peaking at 6.34% in June 2025, with slight fluctuations thereafter but maintaining a positive range above 4.8%. This trend indicates a recovery from operating losses to sustained profitability over the forecast horizon.
- Asset Turnover
- Asset turnover shows a steady increase from March 31, 2020, onwards, starting at 0.26 and rising consistently through the years. It reached 0.59 by December 31, 2022, followed by further moderate growth, stabilizing around 0.75 to 0.77 levels from March 31, 2024, to June 30, 2025. This upward trend demonstrates improving efficiency in using assets to generate revenue, indicating better operational utilization over time.
- Return on Assets (ROA)
- The return on assets follows a trend largely parallel to net profit margin but reflects slightly less volatility. Initially, ROA was negative and deteriorated to -11.87% at March 31, 2020, with gradual improvement observed thereafter. By the end of 2021, the negative impact lessened significantly, and ROA crossed into positive territory by the first quarter of 2023. Following this, ROA improved steadily, peaking at 4.81% in June 2025, before a minor decline to 4.29% at the last data point. The increasing ROA underscores enhanced profitability relative to asset base and suggests effective management of asset resources.
Four-Component Disaggregation of ROA
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
- Tax Burden
- The tax burden ratio is consistently maintained in a narrow range, fluctuating slightly between 0.74 and 0.78 over the most recent observed periods. This indicates a relatively stable effective tax rate impacting earnings.
- Interest Burden
- There is a significant negative interest burden observed earlier, particularly at -15.35, indicating heavy interest expenses or losses impacting operating income. However, this burden improves markedly over time, crossing into positive territory and stabilizing between 0.59 to 0.79 in the later quarters. The trend suggests effective management of interest expenses and improving earnings before interest.
- EBIT Margin
- The EBIT margin shows substantial volatility in the initial periods, with steep negative values reaching as low as -68.71%, reflecting operational challenges or extraordinary costs. Starting from the period showing 0.28%, there is a clear and continuous recovery trend, reaching stable positive margins near 9-10% in later quarters. This recovery indicates enhanced operational efficiency and profitability.
- Asset Turnover
- The asset turnover ratio starts from relatively low values around 0.17-0.26, reflecting low utilization of assets in generating revenue during earlier periods. Over time, it improves steadily, peaking around 0.76-0.77 in the most recent quarters, suggesting progressively better asset management and revenue generation capacity from existing assets.
- Return on Assets (ROA)
- ROA reflects initial negative returns, with values as low as -11.87%, signifying losses relative to total assets. There is a gradual improvement trend, transitioning through breakeven to positive ROA by 1.09%, and further increasing steadily to about 4.29-4.81% in recent quarters. This improvement corresponds with the recovery observed in EBIT margin and asset turnover, reflecting enhanced overall efficiency and profitability on the asset base.
Disaggregation of Net Profit Margin
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
- Tax Burden Ratio
- The tax burden ratio data becomes available starting from early 2023. From March 31, 2023, through June 30, 2025, it remains relatively stable, fluctuating slightly between 0.74 and 0.78. This indicates a consistent level of tax impact on income over the observed periods with minor variation.
- Interest Burden Ratio
- Data for the interest burden ratio begins in the final quarter of 2021 with a highly negative value of -15.35 at September 30, 2021, which then improves markedly over the following quarters. By March 31, 2022, the ratio has turned positive, rising from 0.37 to peak at 0.79 by September 30, 2024, before a slight decline to 0.77 at June 30, 2025. This trend suggests a significant reduction in interest expenses or improved earnings before interest and taxes during this timeframe.
- EBIT Margin
- The EBIT margin exhibits considerable improvement from negative values in 2020 through early 2021 to positive territory by late 2021. Starting at -50.99% in September 30, 2020, it rises steadily through time, turning positive by September 30, 2021 with 0.28%, and continuing to increase to over 10% by March 31, 2023. It slightly fluctuates thereafter but remains near or above 9% until June 30, 2025. This indicates a significant recovery and enhancement in operating profitability over the examined periods.
- Net Profit Margin
- Net profit margin follows a similar pattern to EBIT margin, starting from deep negative values during 2020 and early 2021. From March 31, 2021, at -7.97%, it gradually improves to positive margins in early 2022 and continues to grow, reaching peaks above 6% by September 30, 2024. Some minor fluctuations follow, maintaining margins above 5% through June 30, 2025. This trend reflects a strong recovery in net profitability, indicating improved bottom-line performance in recent years.