Return on Common Equity is defined as:
Return on Common Equity = Net Income To Common / Average Total Common Equity
Return on Common Equity for C2C Advanced Systems is calculated as follows:
Net Income [ 122.8 M ]
(/) Average Equity over Period [ 764.6 M ]
(=) Return on Common Equity [ 16.1% ]
The tables below summarizes the trend in C2C Advanced Systems’s return on common equity over the last five years:
| Fiscal Year |
Net Income |
Average Common Equity |
Return on Common Equity |
| 2020-03-31 |
646.659 T |
NA |
NA |
| 2021-03-31 |
-1.178 M |
NA |
NA |
| 2022-03-31 |
-23.821 M |
NA |
NA |
| 2023-03-31 |
28.752 M |
NA |
NA |
| 2024-03-31 |
122.8 M |
764.6 M |
16.1% |
Return on equity represents the percentage return a company generates on the money shareholders have invested.
The Net Income used in
the numerator is often adjusted for one-time and non-recurring items to present a clearer view of future earnings. Since income is earned over the course of a year, we average book value of Common Equity at the start and end of the year for the denominator.
In general, a higher return on equity suggests management is utilizing the capital invested by shareholders efficiently.
Click the link below to download a spreadsheet with an example Return on Common Equity calculation for C2C Advanced Systems Limited below: