Return on Equity: How the number could lie to you

How to make your Return on Equity looks high?
Return on Equity does not tell you a whole story. source: Pinterest

In the Full Year of 2020, Altria Group recorded a 98% Return on Equity – way far exceeding the index with 17.17%. In 2021, the achievement is much crazier, the Marlboro maker has a 399% Return on Equity. And it is not a seasonal wonder, Altria has consistently maintained a high level of ROE for a long time. Is its business really that good? Our short post tries to investigate further.

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