ROE shows whether management is growing the company's value at an acceptable rate. This ratio tells us ECY generated a 22,7% profit on every dollar invested by shareholders or for eachdollar in equity, ECY generated 22,7 cents in profit.For stable economics, ROEs more than 12-15% are considered desirable. But the ratio strongly depends on many factors such as industry,economic environment (inflation, macroeconomic risks, etc.). From the table of Yacht IndustryRatio, position of ECY in between median and upper quartile of the ratio so it can be concludethat ECY is quite appropriate for using
shareholders’funds to generate a profit.