BG, am not accountant but you're wrong in the calculation. If company borrow the 200, where do the 200 goes...it does not vanish right.
2015-12-16 13:46
Sad to see people talking about ROE when they have no clue of the proper definition of paid up capital. And you still want people to join your super group? Please learn more first...
2015-12-16 14:45
I think you should attend the class to learn some basic FA before writting the article in i3investor
2015-12-16 15:37
Return on Equity = Profit Margin x Total Asset Turnover x Equity Multiplier
=(Net profit/Revenue)x(Revenue/Total Asset)x(Total Asset/Total equity)
Get those ratio out, you will be clearer. (DuPont Analysis)
2015-12-16 15:49
apala~~ ROE= net income/(total asset-total liabilities). If debt(liabilities) increase, then your denominator smaller, so provided larger ROE LO~~ so, dont kena tipu by high ROE company with they possess high debt~
2015-12-17 14:43
its the story, the management and the numbers, in that order.
story first.
2015-12-17 14:45
hpcp
Equity here is not paid-up capital minus debt
2015-12-16 12:44