Return on Equity of some companies

Return on Equity (ROE) is an important indicator for investors. It tells investors how much the company is earning (profits) for the shareholders. It is net profits attributable to shareholders divided by shareholders’ funds calculated as a percentage term.

The higher the ROE, the better for the shareholders. Because it is calculated as percentage term, we can compare one ROE with another ROE of another company.

From the annual reports for some companies with December 2014 year end, the following data were extracted:

Company ROE (%) EPS ($) NAV ($) Div ($)
M1 44.5 0.189 0.42 0.189
SembCorp Marine 19.8 0.268 1.42 0.13
Keppel Corp 18.8 1.04 5.73 0.48
SembCorp Ind 15.2 0.443 3.15 0.16
OCBC 14.8 1.025 9.53 0.36
Comfort Delgro 13.1 0.133 1.02 0.083
UOB 12.3 1.98 17.09 0.75
DBS 10.9 1.63 14.85 0.58

NAV = Net Asset Value
EPS = Earnings per share
Div = Cash Dividend

Of the three banks, OCBC had the best ROE at 14.8%. Of the three marine and offshore outfits, SembCorp Marine had the highest ROE at 19.8%. M1 stands at the top in the table with ROE at 44.5%. Comfort Delgro’s ROE was 13.1%.

Copyright © 2015, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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