Diluted return on net assets after deducting non-recurring gains and losses
factor.formula
Diluted return on net assets after deducting non-recurring gains and losses:
The formula calculates the diluted return on equity after deducting non-recurring gains and losses, where:
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It indicates the total net profit attributable to the owners of the parent company in the last 12 months (rolling) after deducting non-recurring gains and losses. Non-recurring gains and losses refer to occasional income and expenses that are not related to the company's normal business activities, such as asset disposal income, government subsidies, etc. Deducting this part of gains and losses can more accurately reflect the company's core operating profitability. TTM (Trailing Twelve Months) means rolling 12 months, usually calculated by accumulating the financial report data of the last four quarters.
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It represents the total equity attributable to the parent company's shareholders at the end of the reporting period. It reflects the shareholders' ownership share in the company's assets. This data is usually obtained directly from the balance sheet.
factor.explanation
This indicator is designed to measure the company's sustained profitability generated by using shareholders' equity after eliminating the interference of non-recurring gains and losses. It is a key indicator to measure a company's operating efficiency and profit quality. Compared with the return on net assets without deducting non-recurring gains and losses, this indicator focuses more on reflecting the profitability of the company's core business and the true return on shareholders' equity. A higher value means that the company has stronger capital utilization efficiency and higher profit sustainability, which can bring more stable investment returns to shareholders. This indicator uses a diluted algorithm, which means that earnings are calculated based on shareholders' equity at the end of the period, rather than shareholders' equity at the beginning or average of the period, which can more accurately reflect the ability of units of net assets to generate profits at the end of the period.