Volume : 7, Issue : 7, July - 2018

DETERMINANTS OF THE RETURN ON EQUITY RATIO (ROE) ON TEXTILE COMPANIES IN TAMILNADU

Dr. C. Vadivel, P. Nithya Devi

Abstract :

<p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;text-align:&#10;justify;line-height:150%;mso-layout-grid-align:none;text-autospace:none"><span style="font-size:12.0pt;mso-bidi-font-size:10.0pt;line-height:150%;font-family:&#10;&quot;Times New Roman&quot;,&quot;serif&quot;">The purpose of this article is to present the possibilities of analyzing popular among investors ratio of ROE and identificationthe determinants of its growth or decline. Traditionally, according to the DuPont formula three indicatorsare presented as the primary determinants of ROE. The paper shows the possibility of a oader look at the issue anduse of the five factors affecting the ROE. This approach reveals that, using various financial and operational strategiesone can influence ROE. The analysis was conducted on the example of three textile companies from manufacturing <span style="mso-spacerun:yes">&nbsp;</span>sector.<o:p></o:p></span></p>