您现在的位置是:l 0 b 6 a e b r t 5 d l i 2 n y x i 1 o f 8 2 h 6 > Comprehensive
【can you mod a phone to support different bands】Is Shubhlaxmi Jewel Art Limited’s (NSE:SHUBHLAXMI) ROE Of 15% Impressive?
l 0 b 6 a e b r t 5 d l i 2 n y x i 1 o f 8 2 h 62024-09-29 12:30:01【Comprehensive】6人已围观
简介Many investors are still learning about the various metrics that can be useful when analysing a stoc can you mod a phone to support different bands
Many investors are still learning about the various metrics that can be useful when analysing a stock. This can you mod a phone to support different bandsarticle is for those who would like to learn about Return On Equity (ROE). To keep the lesson grounded in practicality, we’ll use ROE to better understand Shubhlaxmi Jewel Art Limited (
NSE:SHUBHLAXMI
).
Shubhlaxmi Jewel Art has a ROE of 15%
, based on the last twelve months. Another way to think of that is that for every ₹1 worth of equity in the company, it was able to earn ₹0.15.
View our latest analysis for Shubhlaxmi Jewel Art
How Do I Calculate Return On Equity?
The
formula for ROE
is:
Return on Equity = Net Profit ÷ Shareholders’ Equity
Or for Shubhlaxmi Jewel Art:
15% = 8.243 ÷ ₹55m (Based on the trailing twelve months to March 2018.)
It’s easy to understand the ‘net profit’ part of that equation, but ‘shareholders’ equity’ requires further explanation. It is the capital paid in by shareholders, plus any retained earnings. The easiest way to calculate shareholders’ equity is to subtract the company’s total liabilities from the total assets.
What Does Return On Equity Mean?
Return on Equity measures a company’s profitability against the profit it has kept for the business (plus any capital injections). The ‘return’ is the yearly profit. That means that the higher the ROE, the more profitable the company is. So, as a general rule,
a high ROE is a good thing
. That means ROE can be used to compare two businesses.
Does Shubhlaxmi Jewel Art Have A Good Return On Equity?
Arguably the easiest way to assess company’s ROE is to compare it with the average in its industry. However, this method is only useful as a rough check, because companies do differ quite a bit within the same industry classification. As is clear from the image below, Shubhlaxmi Jewel Art has a better ROE than the average (11%) in the Specialty Retail industry.
NSEI:SHUBHLAXMI Last Perf January 2nd 19
That’s clearly a positive. I usually take a closer look when a company has a better ROE than industry peers. For example,
I often check if insiders have been buying shares
.
Why You Should Consider Debt When Looking At ROE
Virtually all companies need money to invest in the business, to grow profits. That cash can come from issuing shares, retained earnings, or debt. In the first two cases, the ROE will capture this use of capital to grow. In the latter case, the debt required for growth will boost returns, but will not impact the shareholders’ equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking.
Story continues
Shubhlaxmi Jewel Art’s Debt And Its 15% ROE
Shubhlaxmi Jewel Art does use a significant amount of debt to increase returns. It has a debt to equity ratio of 1.69. While the ROE isn’t too bad, it would probably be a lot lower if the company was forced to reduce debt. Debt increases risk and reduces options for the company in the future, so you generally want to see some good returns from using it.
In Summary
Return on equity is useful for comparing the quality of different businesses. A company that can achieve a high return on equity without debt could be considered a high quality business. If two companies have the same ROE, then I would generally prefer the one with less debt.
But when a business is high quality, the market often bids it up to a price that reflects this. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. You can see how the company has grow in the past by looking at this FREE
detailed graph
of past earnings, revenue and cash flow
.
Of course,
you might find a fantastic investment by looking elsewhere.
So take a peek at this
free
list of interesting companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at
.
View comments
很赞哦!(447)
相关文章
- EU open to compensating firms hit by coronavirus, more help for Italy
- Outlook into the Worldwide Plasma Protein Therapeutics to 2025 - Featuring CSL Behring, Biotest AG & Baxter Among Others
- Former Walmart CEO says coronavirus will challenge department stores
- Did Apogee Enterprises, Inc.'s (NASDAQ:APOG) Recent Earnings Growth Beat The Trend?
- FTC Sending More Than $470K to People Duped by My7Network, ‘Bitcoin Funding Team’ Scams
- Best Tarot Cards Reading Online By Kasamba Tarot Readers Experts - How To get Free Love Tarot Readings Online
- Mitch Gould and Nutritional Products International Welcome Record-Shattering GDP for Third Quarter
- 5 High-Yield Stocks to Defy Coronavirus-Led Crisis in April
- XFC to Live Stream Inaugural Try-Outs in Michigan on Sept 12 Live on Location at Team SFS-Scorpion Fighting System
- HSBC adds former co-CEO of world's biggest hedge fund Bridgewater Associates to board
热门文章
站长推荐
This Alibaba Stock Correction Offers an Opportunity You Can’t Refuse
American Airlines slashes flights but has no plans to halt U.S. service
Is Focus Financial Partners (FOCS) a Great Growth Stock?
LeadsRx and WideOrbit Partnership Gives Advertisers Access to Advertising Campaign Data to Maximize ROAS
Wells Fargo CEO tells Congress bank has doubled down on regulatory issues
Ocean Shipping Services Continue To Deteriorate
Live Oak Acquisition Corp. II Announces Pricing of Upsized $220,000,000 Initial Public Offering
NetCents Technology Notches Record Transaction Volume, Again
友情链接
- Bitcoin Sees Record Number of Active Users as Price Almost Hits $20K
- SHAREHOLDER ALERT: TUFN EHTH R: The Law Offices of Vincent Wong Reminds Investors of Important Class Action Deadlines
- Pacific Empire Announces Engagement of OreQuest Consultants as Technical Advisors and the Sale of Shares of Nova Royalty Corp. for Proceeds of Approximately C$644,795
- How Does Duluth Holdings's (NASDAQ:DLTH) P/E Compare To Its Industry, After The Share Price Drop?
- UPLCQ Deadline: Bronstein, Gewirtz & Grossman, LLC Reminds Ultra Petroleum Corp. Investors of Class Action and Lead Plaintiff Deadline: November 2, 2020
- China Is Reopening Its Wet Markets. That's Good
- Goodfood’s Strong Growth Continues as Its Active Subscribers Count Increases 33% to Reach 306,000
- Were Hedge Funds Right About Caterpillar (CAT)?
- Unum (UNM) Q1 Earnings and Revenues Lag Estimates
- Wall Street falls as coronavirus shreds U.S. payrolls