Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how effecently a company utilizes investments to generate income.
Return on Equity
About Return On Equity
For most industries Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Based on latest financial disclosure ICICI Bank Ltd has Return On Equity of 11.83%. This is 1237.5% lower than that of the Financial sector, and 42.87% higher than that of Money Center Banks industry, The Return On Equity for all stocks is 207.55% lower than the firm.