Is Shree Cement Limited’s (NSE:SHREECEM) ROE Of 13% Impressive?
Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). By way of learning-by-doing, we’ll look at ROE to gain a better understanding of Shree Cement Limited (NSE:SHREECEM).
Our data shows Shree Cement has a return on equity of 13% for the last year. One way to conceptualize this, is that for each ₹1 of shareholders’ equity it has, the company made ₹0.13 in profit.
Check out our latest analysis for Shree Cement How Do You Calculate ROE?
The formula for ROE is:
Return on Equity = Net Profit ÷ Shareholders’ Equity
Or for Shree Cement:
13% = ₹14b ÷ ₹103b (Based on the trailing twelve months to September 2019.)
Most know that net profit is the total earni ...