4/9/2023 0 Comments Shutterstock vectorSo far, we've learned that ROE is a measure of a company's profitability. What Has ROE Got To Do With Earnings Growth? So, this means that for every $1 of its shareholder's investments, the company generates a profit of $0.20. The 'return' is the profit over the last twelve months. So, based on the above formula, the ROE for Shutterstock is:Ģ0% = US$89m ÷ US$444m (Based on the trailing twelve months to March 2022). Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity Return on equity can be calculated by using the formula: View our latest analysis for Shutterstock How To Calculate Return On Equity? Put another way, it reveals the company's success at turning shareholder investments into profits. Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. Particularly, we will be paying attention to Shutterstock's ROE today. But if you pay close attention, you might gather that its strong financials could mean that the stock could potentially see an increase in value in the long-term, given how markets usually reward companies with good financial health. That means investors better prepare for the DeFi opportunities that are coming down the pike.Shutterstock (NYSE:SSTK) has had a rough three months with its share price down 28%. According to Rasmussen, these lessons will be the seeds of DeFi’s future success. They are likely also learning from the challenges posed by the current economic downturn. The Curve protocol has been feeling the market’s need for lending and liquidity services, as it was one of the biggest price gainers during the first week of July–its price rallied by almost 40%.ĭeFi developers are learning from the limitations and challenges they encountered in 2021, says Ryan Rasmussen, DeFi Research Analyst at Bitwise. As such, quick and easy lending services are at the forefront. Financing has been a hot topic because of the market conditions that are building toward a recession. It is an Ethereum-based exchange liquidity pool that enables low-risk and efficient stablecoin trading. Similar to Aave, Curve facilitates lending services. As it becomes increasingly over-collateralized, Aave could expand its user base during the next wave of DeFi. Most recently, the token surged by 45%, owing to the announcement of the platform to create a new US dollar-pegged stablecoin called GHO. The price of its token, AAVE, has been making consistent small gains. It offers a convenient system for lending where users can borrow a range of cryptocurrencies. Its first presale is also about to begin, enabling prospective investors to buy into this protocol early.Īave is a DeFi solution for creating non-custodial liquidity markets. The official launch of Uniglo is scheduled for October 18. All profits from selling assets will be reinvested toward buying more collectibles to drive capital appreciation. It will build a treasury to purchase a range of digital and tangible assets that will back the value of GLO. The protocol maintains a community-owned collection of assets called the Uniglo Asset Vault. Essentially, Uniglo offers an investment opportunity for those who want to benefit from the gains of volatile cryptocurrencies but also wish to mitigate that volatility with more stable assets. It is community-based, placing its growth and the appreciation of its token, GLO, in the hands of investors. Uniglo is a Decentralized Autonomous Organization (DAO) protocol. And we believe Uniglo (GLO), Aave (AAVE), and Curve (CRV) will benefit the most during the next wave of DeFi. DeFi solutions with innovative applications and a long-term perspective could rise above the rest. Once the market sets itself in the direction of recovery, DeFi could have its next wave of adoption. The cryptocurrency market may be at a low point today, but it doesn’t matter much. The opportunities and revenue arising from DeFi will only increase from here. Given that enormous capital is locked into it, the DeFi space is set for further expansion. The total value locked (TVL) also grew by $200 billion from 2020 to 2021. In 2020, the DeFi space started to see governance tokens, user incentives, and asset management applications, among others.Īnd in 2021, the DeFi space exploded, increasing the stablecoin supply from $28 billion in 2020 to $152 billion. In 2017, DeFi started with programmable money such as MakerDAO’s DAI and Bancor’s Automated Market Maker.
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