Arrow Greentech’s (NSE:ARROWGREEN) stock is up by a considerable 15% over the past month. Given that the market rewards strong financials in the long-term, we wonder if that is the case in this instance. In this article, we decided to focus on Arrow Greentech’s ROE.
Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. Put another way, it reveals the company’s success at turning shareholder investments into profits.
View our latest analysis for Arrow Greentech
How Is ROE Calculated?
The formula for ROE is:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders’ Equity
So, based on the above formula, the ROE for Arrow Greentech is:
28% = ₹321m ÷ ₹1.1b (Based on the trailing twelve months to December 2023).
The ‘return’ refers to a company’s earnings over the last year. That means that for every…
