Olectra Greentech (NSE:OLECTRA) has had a rough three months with its share price down 35%. However, stock prices are usually driven by a company’s financials over the long term, which in this case look pretty respectable. Particularly, we will be paying attention to Olectra Greentech’s ROE today.
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money. Put another way, it reveals the company’s success at turning shareholder investments into profits.
Check out our latest analysis for Olectra Greentech
How To Calculate Return On Equity?
The formula for return on equity is:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders’ Equity
So, based on the above formula, the ROE for Olectra Greentech is:
14% = ₹1.3b ÷ ₹9.9b (Based on the trailing twelve months to December 2024).
The ‘return’ refers to a company’s earnings over the last…
