净资产收益率（Return on equity）.docVIP

净资产收益率（Return on equity） Rate of return on net assets and return on equity, is the percentage of net profit and average shareholders equity, is the percentage of the companys after tax profit divided by net assets rate, the index reflects the shareholder equity income level is used to measure the efficiency of the use of company owned capital. The higher the index value, the higher the income of the investment For several years the rate of return on net assets on a listed company, we will find an interesting phenomenon: the listed company often just listed in recent years has a good rate of return on net assets, but this index will decline significantly. This is because, when a company with the increase of the continuous expansion of the scale, the net assets, must develop new products and new markets with new management mode, to ensure that the net profit and net assets growth. But this is a big challenge for the enterprise, this is mainly to test a business leaders prediction of the development of the industry, the new profit growth point of judgment, and his management ability can continue to improve. Sometimes, a listed company looks pretty good ability to make money, mainly because of its leader familiar with a product, a technology, a kind of marketing, or is suitable for a certain scale of personnel, capital management. But when the development of enterprises put forward higher requirements to him, he may be too stretched out of his strength. Therefore, when a listed company with the expansion of the scale, can still maintain good long-term rate of return on net assets, the companys leaders have the ability to lead the company from one victory to another victory. For the listed companies managed by such entrepreneurs, we can give higher valuations. 1. cant be lower than interest rate How much is the return on equity of listed companies? Generally speaking, on the top of the cap, the higher the better, but the lower limit is still there, that is, can not be lo