Rio Tinto Group Stock Return On Equity

RIO1 Stock  EUR 59.24  1.17  2.01%   
Fundamental analysis of Rio Tinto allows traders to better anticipate movements in Rio Tinto's stock price by examining its financial health and performance throughout various phases of its business cycle.
  
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Rio Tinto Group Company Return On Equity Analysis

Rio Tinto's Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Return On Equity

 = 

Net Income

Total Equity

More About Return On Equity | All Equity Analysis

Current Rio Tinto Return On Equity

    
  0.24  
Most of Rio Tinto's fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Rio Tinto Group is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Competition

Based on the latest financial disclosure, Rio Tinto Group has a Return On Equity of 0.2402. This is 73.6% lower than that of the Basic Materials sector and 49.96% lower than that of the Industrial Metals & Minerals industry. The return on equity for all Germany stocks is 177.48% lower than that of the firm.

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Rio Fundamentals

About Rio Tinto Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Rio Tinto Group's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Rio Tinto using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Rio Tinto Group based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

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Other Information on Investing in Rio Stock

Rio Tinto financial ratios help investors to determine whether Rio Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Rio with respect to the benefits of owning Rio Tinto security.