What is the difference between the growth rate of net assets per share and the return on equity Are

Updated on Financial 2024-04-22
7 answers
  1. Anonymous users2024-02-08

    There are the following differences:

    1. The concept is different.

    The ratio of the increase in the net assets of the former to the total net assets of the previous period, and the ratio of the net profit to the average shareholders' equity of the latter.

    2. Different application occasions.

    The former reflects the income level of shareholders' equity and is used to measure the efficiency of the company's use of its own capital, while the latter reflects the expansion rate of the company's capital scale, which is an important indicator to measure the change and growth of the total scale of the enterprise.

    3. The influencing factors are different.

    The former is the overall asset impact on the overall level, and the latter is the net profit affecting the overall level.

  2. Anonymous users2024-02-07

    The growth rate of net assets refers to the ratio of the total net assets of an enterprise in the current period to the total net assets of the previous period. It reflects the expansion rate of the company's capital scale and is an important indicator to measure the change and growth of the total scale of the enterprise.

    Return on equity, also known as return on shareholders' equity, is the percentage of net profit to average shareholders' equity, which is the percentage ratio obtained by dividing the company's after-tax profit by net assets. The higher the indicator value, the higher the return on investment.

    For example, if a listed company's net assets per share this year are 4 yuan, and this year's earnings per share is yuan, then the return on equity is 10% (, return on equity = earnings per share net assets per share.

    Assuming that the company's net assets per share are 5 yuan next year, the growth rate of net assets per share is (5-4) 4=, that is, 25%.

  3. Anonymous users2024-02-06

    1. Earnings per share is earnings per share (EPS), also known as after-tax profit per share and earnings per share, which refers to the ratio of after-tax profit to total share capital. It is the net profit of the enterprise or the net loss of the enterprise that ordinary shareholders can bear for each share they hold. Earnings per share is usually used to reflect the operating results of enterprises, measure the profitability of common shares and investment risks, and is one of the important financial indicators for investors and other information users to evaluate the profitability of enterprises, the growth potential of enterprises, and then make relevant economic decisions.

    In the income statement, Article 9 lists the items of "basic earnings per share" and "diluted earnings per share".

    2. Net assets per share refers to the ratio of shareholders' equity to the total number of shares. It is calculated as follows: net assets per share = total shareholders' equity and total number of shares.

    This indicator reflects the present value of assets owned per share**. The higher the net assets per share, the more value of assets per share owned by shareholders; The lower the net assets per share, the less the value of the assets per share owned by the shareholder. Generally, the higher the net assets per share, the better.

    3. Return on equity (ROE) is also known as return on equity Return on equity Return on equity Return on equity is the percentage of net profit and average shareholders' equity, which is the percentage rate obtained by dividing the company's after-tax profit by net assets, which reflects the income level of shareholders' equity and is used to measure the efficiency of the company's use of its own capital. The higher the indicator value, the higher the return on investment. This indicator reflects the ability of own capital to generate net income.

  4. Anonymous users2024-02-05

    Earnings per share. After-tax profit of listed companies Total share capital (i.e. total number of **) = earnings per share (earnings per share).

    Earnings per share can reveal the state of a business's operations.

    Net assets per share.

    Net assets per share refers to the ratio of shareholders' equity to total share capital. It is calculated as follows:

    Net assets per share.

    Shareholders' Equity Total share capital. This indicator reflects the present value of assets owned per share**. The higher the net assets per share, the greater the present value of the assets owned by the shareholder; The less the net assets per share, the less the present value of the assets owned by the shareholders. Generally, the higher the net assets per share, the better.

    Return on equity.

    Return on equity.

    Formula: Return on equity = net profit Average net assets.

    Evaluation: It is generally believed that the higher the return on net assets of an enterprise, the stronger the ability of the enterprise's own capital to obtain income, the better the operational effect, and the higher the degree of guarantee for the investors and debtors of the enterprise.

  5. Anonymous users2024-02-04

    1. Earnings per share = net profit and total share capital.

    2. Net assets per share = net assets Total share capital.

    3. Profit margin of main business = profit of main business income of main business.

    4. Provident fund per share = capital reserve and total share capital.

    5. The average number of shares held by each household = the total number of shares and the total number of accounts; Per shareholding of tradable shareholders = tradable share capital Number of tradable accounts.

    6. Return on net assets = net profit and net assets.

    The concept was available on all floors.

  6. Anonymous users2024-02-03

    Summary. Little change in ROE indicates that the profitability (or profitability) of the company's net assets has not changed much. Return on equity is the ratio of the company's net profit to net assets, which reflects the company's ability to create profits per 1 yuan of its own funds (shareholders' equity), and is one of the core indicators to measure the company's overall profitability.

    The calculation formula is, return on equity = net profit net assets (shareholders' equity) * 100%.

    Return on equity (ROE), also known as return on equity Return on equity Profit on equity is the percentage of net profit to average shareholders' equity, which is the percentage ratio obtained by dividing the company's after-tax profit by net assets. The higher the indicator value, the higher the return on investment. This indicator reflects the ability of own capital to generate net income.

    The return on equity has not changed much, indicating that the company's net asset profitability has not changed much. Return on equity is the ratio of the company's net profit to net assets, which reflects the company's ability to create profits per 1 yuan of its own funds (shareholders' equity), and is one of the core indicators to measure the company's overall profitability. The calculation formula is, return on equity = net profit net assets (shareholders' equity) * 100%.

    Return on equity (ROE), also known as return on equity Return on equity Return on equity Return on equity Profit on equity Profit on equity is the percentage of net profit to average shareholders' equity, which is the percentage rate of the company's after-tax profit divided by net assets, which reflects the income level of shareholders' equity and is used to measure the efficiency of the company's use of its own capital. The higher the indicator value, the higher the return on investment. This indicator reflects the ability of own capital to generate net income.

  7. Anonymous users2024-02-02

    Hello dear, glad to answer for you. Answer: The return on equity is greater than the growth rate.

    Return on equity (ROE) refers to the net profit income generated by each dollar of a company's net assets, which is an important indicator to measure the investment efficiency of the company's shareholders. The growth rate refers to the growth degree of a certain indicator of the company (such as net profit) in a certain period of time, which is an important indicator to measure the company's development level. Since ROE refers to the net profit generated by each dollar of net assets, and the growth rate only refers to the degree of growth of a certain indicator, generally speaking, the ROE will be greater than the growth rate.

    Return on equity and growth rate are both important indicators of a company's performance, but they have different meanings and should be used together to better assess the company's performance.

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