End of period diluted return on equity (TTM ROE)
factor.formula
End of period diluted return on equity (TTM ROE):
in:
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Refers to the total net profit attributable to the parent company's shareholders in the past 12 consecutive months. This value is calculated on a rolling basis to ensure the consistency of the data time window and better reflect the company's recent profitability.
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Refers to the total equity attributable to the parent company's shareholders at the end of the reporting period, including paid-in capital/share capital, capital reserves, other comprehensive income, surplus reserves and retained earnings, etc. End-of-period equity more accurately reflects the actual net asset size of the company at the end of the reporting period.
factor.explanation
The diluted return on net assets at the end of the period (TTM ROE) is an important financial indicator for evaluating a company's profitability and capital efficiency. It reveals how a company uses shareholders' investment to create profits by comparing the company's net profit for the past 12 months with the shareholders' equity at the end of the period. The higher the value of this indicator, the stronger the company's ability to create profits using shareholders' equity, and the higher the return it brings to shareholders. The use of a diluted algorithm can more accurately reflect the net profit generated by each unit of net assets of the company at the end of the reporting period, which is more valuable for comparing the profitability of different periods or different companies. Compared with the ROE calculated using average shareholders' equity, the use of shareholders' equity at the end of the period can avoid distortion of indicators caused by large fluctuations in equity. Therefore, TTM ROE is one of the key indicators for investors to evaluate the quality of a company's earnings and the management's ability to use capital.