Posted by hpcp > 2015-12-16 12:44 | Report Abuse

Equity here is not paid-up capital minus debt

Posted by imoogi99 > 2015-12-16 13:46 | Report Abuse

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.

Posted by Newbhere > 2015-12-16 14:45 | Report Abuse

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...

Posted by miketyu > 2015-12-16 15:10 | Report Abuse

Look for Mr Kc Chong

Posted by Chin Pin Tan > 2015-12-16 15:37 | Report Abuse

I think you should attend the class to learn some basic FA before writting the article in i3investor

Posted by RicheHo > 2015-12-16 15:49 | Report Abuse

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)

Posted by aunloke > 2015-12-16 15:57 | Report Abuse

A good guide is ROA shouldn't be lower than 70% of ROE.

Posted by pokoknangka > 2015-12-17 14:15 | Report Abuse

right!

Posted by hissyu2 > 2015-12-17 14:43 | Report Abuse

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~

Posted by Desa20201956 > 2015-12-17 14:45 | Report Abuse

its the story, the management and the numbers, in that order.


story first.