With its stock down 9.9% over the past week, it is easy to disregard Shanghai Fortune Techgroup (SZSE:300493). However, stock prices are usually driven by a company’s financials over the long term, which in this case look pretty respectable. In this article, we decided to focus on Shanghai Fortune Techgroup’s ROE.
Return on equity or ROE is a key measure used to assess how efficiently a company’s management is utilizing the company’s capital. Put another way, it reveals the company’s success at turning shareholder investments into profits.
View our latest analysis for Shanghai Fortune Techgroup
How To Calculate Return On Equity?
The formula for ROE is:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders’ Equity
So, based on the above formula, the ROE for Shanghai Fortune Techgroup is:
3.5% = CN¥38m ÷ CN¥1.1b (Based on the trailing twelve months to March 2024).
The ‘return’ is the income the…
