Diluted ROE (TTM)
factor.formula
Diluted ROE (TTM) =
This formula calculates the trailing twelve months (TTM) value of diluted ROE.
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Refers to the total net profit attributable to the parent company's shareholders for the last 12 consecutive months. Using rolling 12-month data can more smoothly reflect the company's true profit level and avoid deviations caused by fluctuations in single-quarter data. This is a cumulative value, not a single quarter or annual value.
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Refers to the total equity attributable to the parent company's shareholders at the end of the reporting period. This value represents the net assets owned by the company's shareholders at that point in time and is the basic value of shareholders' equity. Using the end-of-period value can better reflect the matching relationship between the current profit level and the end-of-period capital.
factor.explanation
Diluted return on equity (TTM) is a key profitability indicator that measures the efficiency of a company's use of its own capital (i.e., shareholders' equity). It shows the level of net profit generated by the company using shareholders' investments in the past 12 months. The higher the value of this indicator, the more effectively the company's management can use shareholders' funds and create higher returns for shareholders. The use of a diluted algorithm makes the calculated ROE more representative, especially after considering the impact of changes in equity on earnings per share, it can more accurately reflect the company's actual profitability. This indicator is of great significance in assessing a company's long-term profitability and shareholder value creation. Compared with static ROE, TTM ROE can better reflect the company's continued profitability and is more acceptable to investors.