RETURNS ON EQUITY

RETURN ON EQUITY




A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
Company  ROE  Country Industry
LINE-50.10%JapanTechnology
Herc Holding19.10%USAConsumer Services
Hydro One8.80%CanadaUtilities
Worldpay Group29.70%UKIndustrials
Fortive18.30%USAIndustrials
DONG Energy-27.10%DenmarkUtilities
Covestro AG12.80%GermanyBasic Materials
CommerceHub Series0.00%USATechnology
Amundi8.80%FranceFinancials
S&P Global0.00%USAFinancials
Moneta Money Bank13.60%Czeck RepublicFinancials
LIBERTY SIRIUSXM SER2.70%USAConsumer Services
LIBERTY BRAVES SERIE-5.50%USAConsumer Services
CCR SA45.40%BrazilIndustrials
Megacable Holdings S17.60%MexicoConsumer Services
Ingevity17.80%USABasic Materials

Return on Equity ratio measures the ability of a company to generate profits from its own equity (capital less debt).

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. 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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