audit returns

Return metrics — how profitable is the company?

When to use

Assess a company's earning capacity: ROE level and stability, ROIC quality, and whether incremental capital generates value.

Quick Start

# Full return metrics report
audit returns

# Only 2020-2024
audit returns --years 2020-2024

# 5-year ROIIC lookback
audit returns --lag 5

# Custom tax rate
audit returns --tax 0.25

Command

audit returns [--years xxxx-yyyy] [--period q1|h1|9m|annual] [--lag 1-5] [--tax 0.xx] [--help]

Parameter	Description	Default
`--years`	Year range	All years
`--period`	Fiscal period	annual
`--lag`	ROIIC lookback years	3
`--tax`	Tax rate for NOPAT	0.21

Core Metrics

Metric	Formula	Meaning
ROE		Return on equity
ROTE		Return on tangible equity
ROA		Return on assets
ROIC		Return on invested capital (industrials only)
ROIIC		Incremental return on capital

Where:

when non-negative; the raw sum (no tax) when negative. Losses have no tax shield.

Trend Metrics

Metric	Formula	Meaning
ROE CoV		ROE stability; < 10% highly stable
ROIC Slope	Linear regression slope	ROIC trend; > 0 rising, < 0 falling
ROIC R²	Coefficient of determination	Trend reliability; > 70% strong, 40-70% moderate, < 40% noisy

Advisory

ROE Quality

Status	Threshold
`[+]`	Median > 15%
`[~]`	Otherwise

ROE Stability

Status	Threshold
`[+]`	CoV < 10%
`[~]`	Otherwise

ROIC Quality

Status	Threshold
`[+]`	Median > 15%
`[~]`	Otherwise

ROIC Stability

Status	Threshold
`[+]`	CoV < 10%
`[~]`	Otherwise

ROIIC Efficiency

Status	Threshold
`[+]`	> 10% or ( and )
`[~]`	Otherwise

ROIC Trend

Status	Threshold
`[+]`	Slope > 0.5%/yr
`[~]`	Otherwise

ROIC Trend Reliability

Status	Threshold
`[+]`	R² > 70%
`[~]`	Otherwise

Field IDs

Industrial

Name	Field ID
Net Income to Common Stockholders	income:1145
Net Profit	income:1136
Operating Profit	income:1116
Asset Impairment Loss	income:1113
Depreciation & Amortization	income:1110
Total Assets	balance_sheet:1301
Cash and Cash Equivalents	balance_sheet:1304
Short Term Investments	balance_sheet:1305
Stockholders' Equity	balance_sheet:1371
Preferred Stock	balance_sheet:1374
Goodwill	balance_sheet:1333
Short Term Debt	balance_sheet:1349
Long Term Debt	balance_sheet:1358
Long Term Investments	balance_sheet:1324
Financial Assets	balance_sheet:1329

Banking

Name	Field ID
Net Income to Common Stockholders	income:2148
Net Profit	income:2139
Total Assets	balance_sheet:2301
Stockholders' Equity	balance_sheet:2368
Goodwill	balance_sheet:2326
Preferred Stock	balance_sheet:2371

Insurance

Name	Field ID
Net Income to Common Stockholders	income:3150
Net Profit	income:3141
Total Assets	balance_sheet:3301
Stockholders' Equity	balance_sheet:3362
Goodwill	balance_sheet:3324
Preferred Stock	balance_sheet:3365

Industry Routing

Metric	Industrial	Banking	Insurance
ROE	Computed	Computed	Computed
ROTE	Computed	Computed	Computed
ROA	Computed	Computed	Computed
ROIC	Computed	`-`	`-`
ROIIC	Computed	`-`	`-`

Output Example

RETURN METRICS

TICKER: [US.AAPL - Apple Inc.]
PERIOD: [2020-ANNUAL ~ 2024-ANNUAL]

Parameter          Value
------------------------
ROIIC LAG             3Y
Tax Rate           21.0%

[+] ROE Quality: Median 55.6%
    ↳ Median > 15% = high quality
[~] ROE Stability: CoV 15.2%
    ↳ CoV < 10% = highly stable
[+] ROIC Quality: Median 28.4%
    ↳ Median > 15% = high quality
[+] ROIC Stability: CoV 8.5%
    ↳ CoV < 10% = highly stable
[+] ROIIC Efficiency: 47.4%
    ↳ > 10% = value creating
[+] ROIC Trend: 2.30%/yr
    ↳ Slope > 0.5%/yr = strengthening moat
[+] ROIC Trend Reliability: R² 85%
    ↳ R² > 70% = strong trend, 40-70% = moderate, < 40% = noisy

Metric       ROE    ROTE     ROA    ROIC  ROIIC-3Y
--------------------------------------------------
Mean       55.6%   55.6%   18.2%   28.4%     47.4%
Median     52.3%   52.3%   17.5%   27.1%     45.0%
Max       150.1%  150.1%   27.0%   35.3%     62.0%
Min        20.5%   20.5%   12.0%   22.0%     30.0%
StdDev     12.0%   12.0%    5.2%    5.2%     15.0%
CoV        15.2%   15.2%    8.5%   12.0%     25.0%
Slope   2.30%/yr       -       -       -         -
R²            85%      -       -     85%         -

[DATA]

Period          ROE   ROTE    ROA    NOPAT       IC   ROIC  ROIIC-3Y
--------------------------------------------------------------------
2020 ANNUAL   87.9%  87.9%  17.7%    5.20B   14.10B      -         -
2021 ANNUAL  150.1% 150.1%  27.0%   10.30B   16.50B  35.3%     47.4%
...

Commands