Most readers would already know that Allstate’s (NYSE:ALL) stock increased by 4.8% over the past three months. However, the company’s financials look a bit inconsistent and market outcomes are ultimately driven by long-term fundamentals, meaning that the stock could head in either direction. Specifically, we decided to study Allstate’s ROE in this article.
Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors’ money. In simpler terms, it measures the profitability of a company in relation to shareholder’s equity.
See our latest analysis for Allstate
How To Calculate Return On Equity?
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 Allstate is:
7.1% = US$1.3b ÷ US$18b (Based on the trailing twelve months to March 2024).
The ‘return’ refers to a company’s earnings…
