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New Companies
Company  ROE  Country Industry
BGF Retail0.00%KoreaConsumer Services
SG Holdings0.00%JapanIndustrials
Foxconn Interconnect Tech0.00%Hong-KongIndustrials
Delivery Hero AG-17.70%GermanyConsumer Services
Ald SA18.10%FranceIndustrials
WuXi Biologics (P Chip)69.10%ChinaHealth Care

Return on Equity ratio measures the ability of a company to generate profits from its own equity (capital invested by shahorlders plus non-distributed profits).

However, all companies with a return on equity (ROE) high do not necessarily make good investments. Some have high ROE because they require little equity (consulting firm, for example). Other industries require significant infrastructure so they need much more Equity. These two kinds of firms are not comparable only looking at ROE. Indeed, capital-intensive industries are located in markets where barriers to entry limit the competition.

Highest ROE companies
Company  ROE  Country Industry
Marriott International98.10%USAConsumer Services
Constellation Softwa97.00%CanadaTechnology
Pandora A/S96.30%DenmarkConsumer Goods
Bioverativ93.50%USAHealth Care
Kla-Tencor Corp92.20%USATechnology
Lamb Weston Holdings86.80%USAConsumer Goods
MMC NORILSK NICKEL86.30%RussiaBasic Materials
Ebay85.60%USAConsumer Services
Hindustan Unilever83.80%IndiaConsumer Goods

High rate of return companies (high ROE) with little equity contribution will be competing more strongly because the entry barriers will be more permeable. In the latter case, the risk of being copied by competitor is higher.

return on equity ROE

Like many financial ratios, ROE only makes sense when one wishes to compare companies in the same sector.

A high ROE provides no immediate benefit. The price of a share is primarily guided by the earnings per share. However, in the context of globalization, large companies operating with corporate governance are trying to accomplish certain goals, including a high return on equity for shareholders, which orient their policies.

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