MotorCycle Holdings’ ROE.” data-reactid=”28″Most readers would already be aware that MotorCycle Holdings’ (ASX:MTO) stock increased significantly by 57% over the past three months. We wonder if and what role the company’s financials play in that price change as a company’s long-term fundamentals usually dictate market outcomes. In this article, we decided to focus on MotorCycle Holdings’ ROE.
Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company’s shareholders.
How Do You Calculate Return On Equity?
Return on Equity