Ananda Drive Techniques(Shanghai)Co’s (SHSE:603350) stock is up by a considerable 42% over the past three months. We wonder if and what role the company’s financials play in that price change as a company’s long-term fundamentals usually dictate market outcomes. In this article, we decided to focus on Ananda Drive Techniques(Shanghai)Co’s ROE.
ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. In short, ROE shows the profit each dollar generates with respect to its shareholder investments.
Check out our latest analysis for Ananda Drive Techniques(Shanghai)Co
How Is ROE Calculated?
ROE can be calculated by using the formula:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders’ Equity
So, based on the above formula, the ROE for Ananda Drive Techniques(Shanghai)Co is:
9.4% = CN¥126m ÷ CN¥1.3b…
