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, JTP - Apologise to Monica May 12 '14 at 9:42

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  • 1
    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

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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