ROE can distinguish the quality of listed companies. ROE is the percentage of net profit and average shareholders' equity, and it is the percentage of after-tax profit divided by net assets. We need to know the assets and profits of a company, and we need to know the profit value created by net assets. Then the return on net assets can well reflect the relationship between profits and net assets of a listed company. Usually, 15% is taken as the dividing line, and through long-term consideration, it is judged whether a company can effectively use assets to create benefits and maintain value creation for a long time. Only when the year-on-year growth rate of net profit keeps a long-term stable positive growth can a listed company be fully explained. Using this financial indicator, we can clearly compare the quality of a listed company. A company's performance is unstable, and negative growth often occurs, indicating that listed companies are unstable because of changes in the market and industry.
Company-run? Tracking? Can distinguish the quality of listed companies? Few investors pay attention to the operation of listed companies when distinguishing good companies from bad companies? Tracking? . Here? Tracking? Refers to the products, quality and direction operated by the company. I think it's okay? Tracking? It can better reflect the advantages of listed companies and has the ability to resist risks. When investors exchange their analysis of listed companies, they often have? Moat? Product, which describes the quality of a listed company or all its anti-risk ability. ? Tracking? In some ways? Moat? , but it should be broader, not just a product, but from the industry and products. Good business? Tracking? Good product? Tracking? It is the performance of a good listed company.
Is the industry in a leading position, what is its market share and whether it has pricing power? This is also an important condition for evaluating a company. If you are in the leading position in the industry, or the leading position grows steadily, then the company's competitiveness is relatively strong. If there is pricing power in the industry, the leading position will be more obvious, because without pricing power, the company's performance will fluctuate greatly, and it is difficult to ensure the stable growth of net interest rate.