Look at this company's ROE below: FY 2011  -- ROE 72.6% FY 2012 --  ROE 47.7% FY 2013 --  ROE 33.7% FY 2014 --  ROE 25.6% The ROE (return over equities) keeps falling from the 70+% range towards the current 25% range, but it's still pretty high. Would you say something is wrong? If so, what went wrong? It's important at this stage to break up the ROE into parts. It's called Dupont analysis, where ROE is split up into three components, net margin, asset turnover and leverage. If you multiply all the three components together, you'll get ROE, as shown below: Here we can see that the net margin is very very good. Considering that the company IPO in FY2013 (hence anything before is suspect to me), I'll just concentrate on the 2013 and 2014 era. Net profit of 30+% is incredibly high. Take note ......