Contact Energy Limited’s (NZSE:CEN) Stock Financial Prospects Look Bleak: Should Shareholders Be Prepared For A Share Price Correction?
Most readers would already know that Contact Energy’s (NZSE:CEN) stock increased by 2.0% over the past week. However, its weak financial performance indicators makes us a bit doubtful if that trend could continue. In this article, we decided to focus on Contact Energy’s ROE.
Return on equity or ROE is a key measure used to assess how efficiently a company’s management is utilizing the company’s capital. In short, ROE shows the profit each dollar generates with respect to its shareholder investments.
How Is ROE Calculated?
ROE can be calculated by using the formula:
Return on Equity = Net Profit (from continuing…
