Published on 17 Mar 2020 on Simply Wall St. via Yahoo Finance

Boasting A 22% Return On Equity, Is Italgas S.p.A. (BIT:IG) A Top Quality Stock?

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). We'll use ROE to examine Italgas S.p.A. (BIT:IG), by way of a worked example.

Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money. Put another way, it reveals the company's success at turning shareholder investments into profits.