![]() ![]() So far, we've learned that ROE is a measure of a company's profitability. What Has ROE Got To Do With Earnings Growth? One way to conceptualize this is that for each €1 of shareholders' capital it has, the company made €0.02 in profit. The 'return' refers to a company's earnings over the last year. So, based on the above formula, the ROE for is:ġ.9% = €551k ÷ €29m (Based on the trailing twelve months to December 2022). Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity Simply put, it is used to assess the profitability of a company in relation to its equity capital.Ĭheck out our latest analysis for How Is ROE Calculated? Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In this article, we decided to focus on 's ROE. Long-term fundamentals are usually what drive market outcomes, so it's worth paying close attention. It seems that the market might have completely ignored the positive aspects of the company's fundamentals and decided to weigh-in more on the negative aspects. (ETR:ACX) has had a rough three months with its share price down 27%.
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