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Recent ROE Improvement Has Mainly Come from Higher Net Margin

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Global: Falling trend in profitability at constant net margin

Global: Falling trend in profitability at constant net margin | #ChartOfTheDay

 

  • Looking at all non-financial companies globally
  • Return on equity (ROE) = Net margin x Asset turnover x Leverage
  • Kept net margin at the long-term average, 5.3%
  • The analysis shows us that the recent increase in ROE has come from net margin

 

Asia ex Japan: Recent profitability improvement has mainly come from higher net margin

Asia ex Japan: Recent profitability improvement has mainly come from higher net margin | #ChartOfTheDay

 

  • Looking at all non-financial companies in Asia ex Japan
  • Kept net margin at the long-term average, 6.6%
  • The analysis shows us that the recent increase in ROE in Asia ex Japan has come from net margin increase as well

 

Thailand: Recent profitability improvement has mainly come from higher net margin

Thailand: Recent profitability improvement has mainly come from higher net margin | #ChartOfTheDay

 

  • Looking at all non-financial companies in Thailand
  • Kept net margin at the long-term average, 6.5%
  • The analysis again shows us that the recent increase in ROE has come from net margin

 

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Posted in Chart of the Day