The 5-Year ROE CAGR (Compound Annual Growth Rate) measures the average annual growth rate of a company's Return on Equity (ROE) over five years. It reflects how efficiently the company has generated profit relative to shareholder equity over time. A positive ROE CAGR indicates increasing profitability and effective equity management, while a negative value suggests declining returns or inefficiencies. This metric is valuable for assessing a company's management's long-term financial health and effectiveness.
