This value is calculated as the Net Income Before Extraordinary Items for the period divided by the Average Common Equity and is expressed as a percentage. Average Common Equity is the average of the Common Equity at the beginning and the end of the period.
Formula:
ROE% = 100 * NetIncBXor / ( (e0 + e1)/2)
e0 = ComEq end of period
e1 = ComEq beginning of period
IMPORTANT: Quarterly values from Income & Cashflow statements are annualized to make the resulting factor more readily comparable with 12 month factors. The annualization is done by multiplying the quarterly figures by approximately 4 (depends on the actual number of days in the period).