Shanghai Moons’ Electric’s (SHSE:603728) stock is up by a considerable 72% over the past month. 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. Specifically, we decided to study Shanghai Moons’ Electric’s ROE in this article.
Return on equity or ROE is a key measure used to assess how efficiently a company’s management is utilizing the company’s capital. In short, ROE shows the profit each dollar generates with respect to its shareholder investments.
See our latest analysis for Shanghai Moons’ Electric
How To Calculate Return On Equity?
Return on equity 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 Moons’ Electric is:
6.1% = CN¥173m ÷ CN¥2.8b (Based on the trailing twelve months to…
