Roe finance small-cap biotech ROE finance is

Small-cap biotech ROE finance is volatile, currently averaging 8.2% in June By comparing a company's ROE with its industry average, we can get a quick measure of how good it is. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. As you can see in the graphic below, Unilever has a higher ROE than the average (13%) in the Personal Products industry . Virtually all companies need money to invest in the business, to grow profits. That cash can come from retained earnings, issuing new shares (equity), or debt. In the case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. That will make the ROE look better than if no debt was used. Aerospace and defense sector ROE finance currently holds at 14.3%, with 2024 defense budgets on the rise. Forward guidance suggests possible climbs to 15% as order backlogs grow.