Factors Directory

Quantitative Trading Factors

Return on common shareholders' equity (TTM)

ProfitabilityQuality FactorFundamental factors

factor.formula

Average common stockholders' equity =

in:

  • :

    Trailing Twelve Months Net Income attributable to common shareholders.

  • :

    The total amount of preferred stock dividends in the last 12 months (Trailing Twelve Months Preferred Dividends). If the company has no preferred stock issued, this item is 0.

  • :

    Average Common Equity for the last 12 months is calculated by averaging the common equity at the beginning and end of the period.

  • :

    Common shareholders' equity for the period (usually at the end of the reporting period).

  • :

    Common shareholders' equity for the same period of the previous year (the same point in time in the previous year corresponding to the current period).

factor.explanation

The return on common shareholders' equity (TTM) measures the profitability of a company using the capital invested by common shareholders over the past 12 months. It reflects the company's operating efficiency and its ability to create value for common shareholders. The higher the indicator, the stronger the company's ability to create profits using common shareholders' equity and the higher the return to common shareholders. This indicator is usually compared within the same industry to evaluate the company's relative profitability.

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