The ROE 5-Year Average represents a company's average return on equity (ROE) over the last five years. It helps assess how effectively the company has used shareholder equity to generate profits. A higher ROE indicates efficient management and firm profitability, while a lower average suggests less effective use of equity. Investors use this metric to understand long-term trends in profitability and financial health. Consistently improving ROE over five years is often a sign of strong management and business sustainability.
