News’ (NASDAQ:NWSA) stock up by 2.8% over the past week. We wonder if and what role the company’s financials play in that price change as a company’s long-term fundamentals usually dictate market outcomes. In this article, we decided to focus on News’ ROE.
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 News
How Do You 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 News is:
2.0% = US$179m ÷ US$8.7b (Based on the trailing twelve months to September 2023).
The ‘return’ is the amount earned after tax over the last twelve months. So,…
