Published on 9 Oct 2019 on Simply Wall St. via Yahoo Finance
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 Woolworths Group Limited (ASX:WOW), by way of a worked example.
Our data shows Woolworths Group has a return on equity of 15% for the last year. One way to conceptualize this, is that for each A$1 of shareholders' equity it has, the company made A$0.15 in profit.