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| Return on Equity 5-Year Average is a financial metric that provides investors with a smoothed average of a company's return on equity over the past five years. ROE is calculated by dividing a company's net income by its shareholders' equity, and the 5-Year Average takes an average of these ROE values over five years. This metric offers a more stable and long-term perspective on a company's profitability and efficiency in generating shareholder returns. A consistent or increasing ROE 5-Year Average is generally considered a positive sign, indicating that the company has effectively delivered returns to its shareholders over an extended period. Comparing a company's current ROE to its 5-Year Average can help investors identify trends and deviations in its ability to generate consistent returns. A declining ROE 5-Year Average may signal challenges or changes in the company's profitability and operational efficiency, prompting further investigation. |
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