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QuestionsCategory: Stock ScreeningEquity of ASX:LOV in 30-filter filter
Tony asked 2 years ago

Hi, 
I am trying to apply the 30-second filter to this ASX listed company, Lovisa. However, I must be using the wrong figure for equity as I am seeing a falling trend of ROE, from 442.86% in 2015 to 68.52% in 2019, which doesn’t make much sense to me.
For 2019 (click here), I use the figure of 53,651 on page 34. Is this the wrong figure to use for equity? Which figure should I be using instead?
Thank you
Tony
 

1 Answers
Victor Chng answered 2 years ago

Hi Tony,
 
The equity number that you collect for 2019 is $53.7m which is the correct figure. The decrease in ROE was due to the increase in equity base follow by slower growth in net profit. 
Generally, as long as the ROE maintain above 15% is a good sign. 

Tony replied 2 years ago

Oh I see I see. Thank you so much for your comment!