Rolling return on net assets after deducting non-recurring gains and losses
factor.formula
Adjusted ROE TTM:
Average Net Worth:
The meaning of each parameter in the formula is as follows:
- :
Refers to the total net profit attributable to the parent company's shareholders in the past 12 months after deducting all non-recurring gains and losses. Non-recurring gains and losses usually refer to gains and losses that are unrelated to the company's daily operations and occur accidentally, such as gains from asset disposals, government subsidies, etc. Using TTM (Trailing Twelve Months) data can more smoothly reflect the company's profitability in the past year, avoiding the volatility that may be caused by single-quarter data.
- :
Refers to the average value of equity attributable to the parent company at the beginning and end of the period under review. This value represents the average size of the company's equity during the period under review and is used to measure the company's capital investment.
- :
It refers to the portion of the company's owners' equity that belongs to the parent company's shareholders at the beginning of the inspection period, including paid-in capital (share capital), capital reserves, surplus reserves, retained earnings, etc.
- :
It refers to the portion of the company's owners' equity that belongs to the parent company's shareholders at the end of the inspection period, including paid-in capital (share capital), capital reserves, surplus reserves, retained earnings, etc.
factor.explanation
Adjusted ROE TTM measures a company's ability to generate profits using shareholders' equity in the past 12 months, excluding the impact of non-recurring gains and losses. It is a comprehensive profitability indicator that not only reflects the company's capital utilization efficiency, but also reflects the company's operating quality and profitability sustainability. By using rolling 12-month data, quarterly fluctuations can be better smoothed and the company's true profitability can be more accurately reflected. The higher the value of this indicator, the stronger the company's ability to generate profits using its own capital and the higher the return on investment to shareholders. Compared with traditional ROE, ROE after deducting non-recurring gains and losses can better reflect the profitability of a company's core business, and therefore has a higher reference value.