Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). By way of learning-by-doing, we’ll look at ROE to gain a better understanding of Taseko Mines Limited (TSE:TKO).
Return on equity or ROE is a key measure used to assess how efficiently a company’s management is utilizing the company’s capital. In short, ROE shows the profit each dollar generates with respect to its shareholder investments.
View our latest analysis for Taseko Mines
How To Calculate Return On Equity?
The formula for ROE is:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders’ Equity
So, based on the above formula, the ROE for Taseko Mines is:
15% = CA$68m ÷ CA$465m (Based on the trailing twelve months to March 2024).
The ‘return’ is the profit over the last twelve months. One way to conceptualize this is…
