Beta (5 Year)

Return on Common Equity is defined as:

Return on Common Equity = Net Income To Common / Average Total Common Equity

Return on Common Equity for Gconnect Logitech and Supply Chain is calculated as follows:

Net Income [ 1.818 M ]
(/) Average Equity over Period [ 65.956 M ]
(=) Return on Common Equity [ 2.8% ]

The tables below summarizes the trend in Gconnect Logitech and Supply Chain’s return on common equity over the last five years:

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.