RoE of BSE 500 companies at 16-year low – Gulf Today

RoE of BSE 500 companies at 16-year low – Gulf Today

Return on equity (RoE), a key strategic metric used to evaluate the capital allocation efficiency of a company, is at a 16 year low for the S&P BSE 500 companies, a research report said.. An improving RoE and earnings growth are considered to be best for market cap creation but RoE for BSE 500 companies has been edging lower ever since the global financial crisis of 2008-09 and stands at 9.5 per cent in FY19, lowest in the last 16 years.. Because shareholders' equity is equal to a company's assets minus its debt, ROE could be thought of as the return on net assets..