ITMAX System Berhad’s (KLSE:ITMAX) stock is up by a considerable 21% over the past three months. Given that the market rewards strong financials in the long-term, we wonder if that is the case in this instance. In this article, we decided to focus on ITMAX System Berhad’s ROE.
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company’s shareholders.
See our latest analysis for ITMAX System Berhad
How Is ROE Calculated?
The formula for ROE is:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders’ Equity
So, based on the above formula, the ROE for ITMAX System Berhad is:
18% = RM59m ÷ RM326m (Based on the trailing twelve months to September 2023).
The ‘return’ is the yearly profit. Another way…
