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 latest financial results for some companies with December 2015 year-end, the following data were extracted:
|Counter||ROE (%)||EPS ($)||Dividend ($)|
EPS = Earnings per share
Dividend is full year dividend
* StarHub has a very low group shareholders’ equity (due to its unique capital structure) and therefore its ROE is very high.
The table is sorted by ROE from highest ROE to the lowest ROE.
SembCorp Marine has a negative ROE because it had an overall loss in operation for 2015.
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