Profitability Drivers Index: 1Q 2020
Kimberly Clark’s Mexican unit is again at the top of Latin Trade’s most recent edition (1Q2020) of the Profitability Drivers Index. But for this edition, two Brazilian companies climbed to the second and third spots, displacing Peruvian brewer Backus and Johnston. They are Azul Airlines and Oil & Gas firm Comgas. The index analyzes the Return on Equity (ROE) reported by more than 400 Latin American companies by looking at key financial indicators, including financial leverage, net margin, asset turnover, revenues, net income and more. ROE is a useful indicator to compare profitability within companies in the same sector, but it may lead to mistaken conclusions when comparing companies from different sectors, since profitability varies due to the many factors […]