Despite improved bottom line, the company's future prospects remain uncertain. The lack of correlation between EPS growth and falling share price suggests other factors at play. Investors are advised to ensure they are buying a high-quality business.

New Hope Dairy's respectable ROE is riskily boosted by high debt, limiting future options. High-quality businesses can achieve high ROE without excessive debt, often reflected in market prices.

Given New Hope Dairy's heavy reliance on debt, stakeholders should consider market volatility. A high ROE without debt typically indicates a superior company. Yet, other factors like projected profit growth are essential.