Is Shandong A Niu Zhitou reliable? How is the return on shareholders' equity calculated?

Return on shareholders' equity, also known as return on equity/return on equity, refers to the rate of return on investment received by common stock investors. Shareholders' equity or net stock value, carrying amount of common stock or net capital value is the sum of the company's share capital, provident fund, retained earnings, etc. The return on shareholders' equity indicates the return on investments received by common stock investors when they entrust the company's management with the application of their funds. So how to calculate the return on shareholders' equity?

The original calculation formula is: net profit / average shareholders' equity * 100%

One of the formulas for calculating is: return on shareholders' equity = (* profit after - preferred dividend) / shareholders' equity × 100%

This ratio can also be used to detect the size of a company's product profit and the level of sales* revenue, the higher the ratio, indicating that the greater the profit of the product, and vice versa.

Another calculation method is: return on shareholders' equity = return on assets * average equity multiplier

The return on shareholders' equity is more or less appropriate

Net profit is equal to the profit generated by the company in the financial year, and shareholders' equity represents the interests of investors in the company. In the balance sheet, shareholders' equity is the shareholder's ownership of the residual value of the company's assets after all liabilities have been paid off, or directly equivalent to net assets (na v).

In addition to being an indicator of the return on investment received by shareholders within the company, the return on shareholders' equity (ROE) is also an important indicator that monitors the profitability, asset management and financial control of the company's management. For example, when 1 billion shareholders' equity can create an average of 200 million yuan of net profit per year, which means that the 1 billion yuan invested by shareholders can get a return of 200 million yuan per year, then roe is equal to 20%. In general, the higher the roe, the better, higher than 15% is ideal, and greater than 20% is excellent.