Return on Common Equity is defined as:
Return on Common Equity = Net Income To Common / Average Total Common Equity
Return on Common Equity for PT Intikeramik Alamasri Industri is calculated as follows:
Net Income [ 6.053 B ]
(/) Average Equity over Period [ 728.9 B ]
(=) Return on Common Equity [ 0.8% ]
The tables below summarizes the trend in PT Intikeramik Alamasri Industri’s return on common equity over the last five years:
| Fiscal Year |
Net Income |
Average Common Equity |
Return on Common Equity |
| 2019-12-31 |
-67.575 B |
836.7 B |
−8.1% |
| 2020-12-31 |
-70.777 B |
867.6 B |
−8.2% |
| 2021-12-31 |
-55.975 B |
797.6 B |
−7.0% |
| 2022-12-31 |
-37.361 B |
743.8 B |
−5.0% |
| 2023-12-31 |
9.074 B |
729.2 B |
1.2% |
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 Net Income to Common Excl Extra Items calculation for Intikeramik Alamasri Industri below: