Shanghai Kinetic Medical (SZSE:300326) has had a great run on the share market with its stock up by a significant 58% over the last three months. However, we decided to pay attention to the company’s fundamentals which don’t appear to give a clear sign about the company’s financial health. Particularly, we will be paying attention to Shanghai Kinetic Medical’s ROE today.
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money. In short, ROE shows the profit each dollar generates with respect to its shareholder investments.
See our latest analysis for Shanghai Kinetic Medical
How Do You 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 Shanghai Kinetic Medical is:
1.8% = CN¥55m ÷ CN¥3.0b (Based on the trailing twelve…
