AirAsia X Berhad’s (KLSE:AAX) stock is up by a considerable 20% over the past month. Given that stock prices are usually aligned with a company’s financial performance in the long-term, we decided to study its financial indicators more closely to see if they had a hand to play in the recent price move. Specifically, we decided to study AirAsia X Berhad’s ROE in this article.
Return on equity or ROE is a key measure used to assess how efficiently a company’s management is utilizing the company’s capital. Simply put, it is used to assess the profitability of a company in relation to its equity capital.
View our latest analysis for AirAsia X Berhad
How Is ROE Calculated?
The formula for ROE is:
Return on Equity = Net Profit (from continuing operations) ÷ Shareholders’ Equity
So, based on the above formula, the ROE for AirAsia X Berhad is:
43% = RM84m ÷ RM195m (Based on the trailing twelve months to March 2024).
The ‘return’ refers to a company’s earnings over the last year. So, this…
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