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Considering a public retail company existing for more than 47 years, would you suggest 23.12% to be a good percentage return on equity? I know that it is currently better than what banks can offer, but why would you personally suggest it?

Here's the numbers:
avg. equity = 0.5(2 416 000 000+2 404 100 000) = 2 410 060 000

% Return on Equity
(profit after tax/avg. equity)x100/1 = (557 100 000)/(2 410 050 000)×100/1 = 23.12%

closed as primarily opinion-based by Chris W. Rea, Dheer, littleadv, JoeTaxpayer May 12 '14 at 9:42

Many good questions generate some degree of opinion based on expert experience, but answers to this question will tend to be almost entirely based on opinions, rather than facts, references, or specific expertise. If this question can be reworded to fit the rules in the help center, please edit the question.

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    How does "better than what banks can offer" fit into the calculation of a company's finances? – JB King May 4 '14 at 17:32
  • I'm working here on an investor's perspectives. – Johan Brink May 4 '14 at 17:38
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Yes definitely

Warren Buffet averaged returns of only around 21% throughout his 40 years in business.

ROE of 23% is probably more than double the ROE of most companies , whats more as the saying goes its easier to grow sales from 1 million to 100 million than to grow sales from 100 million to 10 billion

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