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 |
Advisory
ROE Quality
| Status |
Threshold |
[+] |
Mean > 15% |
[~] |
Otherwise |
ROE Stability
| Status |
Threshold |
[+] |
CoV < 10% |
[~] |
Otherwise |
ROIC Quality
| Status |
Threshold |
[+] |
Mean > 15% |
[~] |
Otherwise |
ROIIC Efficiency
| Status |
Threshold |
[+] |
> 10% or ( and ) |
[~] |
Otherwise |
ROIC Trend
| Status |
Threshold |
[+] |
Slope > 0.5%/yr |
[~] |
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%
ROIC Basis Average IC
[+] ROE Quality: Mean 55.6%
[~] ROE Stability: CoV 15.2%
[+] ROIC Quality: Mean 28.4%
[+] ROIIC Efficiency: 47.4%
[+] ROIC Trend: 2.30%/yr
Metric Value
-------------------------
ROE CoV (Stability) 15.2%
ROIC Trend (Slope) 2.30%/yr
Period ROE ROTE ROA ROIC ROIIC-3Y
---------------------------------------------------
2020 ANNUAL 87.9% 87.9% 17.7% - -
2021 ANNUAL 150.1% 150.1% 27.0% 35.3% 47.4%
...
