Basic formula

經過多年投資，其實最重要的還是ROE。 而其組成為Profit margin x Assets turnover x Leverage。而這些數字可由 Net income, Revenue, Total Assets, Shareholder equity 得來。由此我們已可對公司的運作情況有一個初步的了解。 是高槓桿運作? 還是簿利多銷呢? 針對個別情況，我們便可作更深入的研究及分析。

After many years of investment, in fact, the most important thing is ROE. Basically, it is combined by Profit margin x Assets turnover x Leverage. The foresaid figures can be derived from net income, revenue, total Assets, shareholder equity. Thus, we have to know the operation of the company with a preliminary understanding. Is it highly leveraged operations? Is it a low profit margin but highly turnover? Then, we can make more in-depth research and analysis based on individual case.