How Return On Equity Can Help You Find Profitable Stocks?

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In practice, how are the common stock and the preferred stock issued and recorde...
Posted by:
Ahmed Elemam
31-May-2016

How Return On Equity Can Help You Find Profitable Stocks?

Accounting Cost Accounting Financial Reporting Financial Accounting Financial Statements

Question added by Mohammad Iqbal Abubaker , Jahaca Pty Ltd - Accounts Administrator , Jahaca Pty Ltd - Accounts Administrator
Date Posted: 2017/03/26

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AHMAD OMAR CMA-CertIFR

by AHMAD OMAR CMA-CertIFR , Accounting Manager , NADIA BAKHURJI ARCHITECTS & INTERIOR DESIGN CONSULTANTS

The higher the ROE ratio, the more profitable the stock is, despite that an increase in ROE can be a signal that a company has not invested in modernization of Plant & Equipment or research & development, which in the long run can lead to declining profits.

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