This measurement disregards the preferred stockholders and is the equivalent of
shareholders equity less preferred equity.
Not exact matches
Return on
equity is the ratio of annualized net income
less preferred dividends to average
shareholders»
equity for the periods presented.
Core return on
equity is the ratio of annualized core income
less preferred dividends to adjusted average
shareholders»
equity for the periods presented.
Average annual core return on
equity over a period is the ratio of: a) the sum of core income
less preferred dividends for the periods presented to b) the sum of: 1) the sum of the adjusted average
shareholders»
equity for all full years in the period presented, and 2) for partial years in the period presented, the number of quarters in that partial year divided by four, multiplied by the adjusted average
shareholders»
equity of the partial year.
Obviously, REITs tend to be
less favorable since they are required to pay out 90 % of their profits to
shareholders vs. purchasing
equities and paying long term capital gains rate when selling shares.
A
shareholder's
equity is the total of all assets
less the total of all liabilities of the company, divided by the number of
shareholder's shares.
RGC Resources has not efficiently used
shareholders» funds last year (Return on
Equity less than 20 %).
Remember,
shareholder's
equity is assets
less liabilities, which represent what the firm owes, including its long - and short - term debt.
Because most companies choose to pay a steady dividend to their
shareholders, dividends — their frequency and amount — are persistent and much
less volatile than
equity prices.
The
shareholder equity would then be worth $ 5.2 billion (the $ 7.4 billion EV
less the debt of $ 2.2 billion).
More specifically, Graham wanted his stocks to have leverage ratios (the ratio of total assets to
shareholders»
equity) of two or
less.