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How Return On Equity Can Help You Find Profitable Stocks?

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