The Analysis and Evaluation of Profitability in Accepted Companies in Tehran Stock Exchange with ROA and ROE Approaches in Industrial Companies

Ataollah Taleghani
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Ataollah Taleghani: MSc Student of Engineering and Management, University of Politecnico di Torino, Torino, Italy

Business, Management and Economics Research, 2021, vol. 7, issue 2, 21-26

Abstract: Return on Equity (ROE) is one of the most important factors influencing the investor’s decisions. By analysing the financial statements, the financial analysers are always trying to evaluate or identify the future profitability changes of the companies. In this study, the relation between ROE of industries entered into Tehran Stock Exchange was investigated. Herein the significant role of industry is expressed through operating and financial drives. The study data is taken from a sample consisting of 4 industries including 70 companies entered into Tehran stock Exchange during a 7- year time duration (from March 21st, 2012 to March 20th, 2019). Results indicate that there is a significant relation between ROE and its elements as per the industry and future profitability.

Keywords: : Evaluation of the future profitability; Return on equity (ROE); Return on asset (ROA); Financial leverage; Industry. (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (1)

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