Return on Common Equity is defined as:
Return on Common Equity = Net Income To Common / Average Total Common Equity
Return on Common Equity for Saigon Beer - Alcohol - Beverage is calculated as follows:
Net Income [ 4,330.1 B ]
(/) Average Equity over Period [ 23,747.2 B ]
(=) Return on Common Equity [ 18.2% ]
The tables below summarizes the trend in Saigon Beer - Alcohol - Beverage’s return on common equity over the last five years:
| Fiscal Year |
Net Income |
Average Common Equity |
Return on Common Equity |
| 2021-01-01 |
4,582.3 B |
19,372.7 B |
23.7% |
| 2022-01-01 |
3,562.9 B |
20,580.9 B |
17.3% |
| 2023-01-01 |
5,119.2 B |
22,180.9 B |
23.1% |
| 2023-12-31 |
4,016.9 B |
23,676.3 B |
17.0% |
| 2024-12-31 |
4,330.1 B |
23,747.2 B |
18.2% |
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 Saigon Beer Alcohol Beverage Corp below: