Is Seatrium Limited's Recent Price Movement Underpinned By Its Weak Fundamentals?
Seatrium has had a rough month with its share price down 19%. We, however decided to study the company's financials to determine if they have got anything to do with the price decline. Long-term fundamentals are usually what drive market outcomes, so it's worth paying close attention. Specifically, we decided to study Seatrium's ROE in this article.ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders.Return on equity can be calculated by using the formula:. Return on Equity = Net Profit ÷ Shareholders' Equity. In spite of a normal three-year median payout ratio of 33% , the fact that Seatri