Quanta Services’ (NYSE:PWR) stock is up by a considerable 13% over the past three months. Given that the market rewards strong financials in the long-term, we wonder if that is the case in this instance. Particularly, we will be paying attention to Quanta Services’ ROE today.
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company’s shareholders.
View our latest analysis for Quanta Services
How Is ROE Calculated?
ROE can be calculated by using the formula:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders’ Equity
So, based on the above formula, the ROE for Quanta Services is:
12% = US$780m ÷ US$6.4b (Based on the trailing twelve months to March 2024).
The ‘return’ is the profit over the last twelve months. One way to conceptualize this…
