With its stock down 10% over the past three months, it is easy to disregard Shanghai Flyco Electrical Appliance (SHSE:603868). However, stock prices are usually driven by a company’s financials over the long term, which in this case look pretty respectable. Specifically, we decided to study Shanghai Flyco Electrical Appliance’s ROE in this article.
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. In short, ROE shows the profit each dollar generates with respect to its shareholder investments.
View our latest analysis for Shanghai Flyco Electrical Appliance
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 Shanghai Flyco Electrical Appliance is:
22% = CN¥657m ÷ CN¥3.0b…
