Afine Investments Limited (JSE:ANI) has reported a return on equity (ROE) of 12% for the trailing twelve months up to February 2023, according to a recent analysis. This figure indicates that for every ZAR1 of its shareholder's investments, the company generates a profit of ZAR0.12 ($1 = ZAR19.2467).
In comparison to the Real Estate industry average, which stands at 11%, Afine Investments' ROE is neither particularly good nor bad. However, further checks are suggested to determine if high debt levels are boosting the company's ROE, as this could increase its exposure to financial risk.
In Afine Investments' case, the company maintains a conservative debt-to-equity ratio of 0.41, far from excessive. This suggests that while the ROE isn't overly impressive, the company's modest debt load indicates potential for growth. However, it also leaves the company more exposed to interest rate rises.
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