Return on common equity

$$\frac{\text{Net income to common}}{\text{Avg common equity}}$$

ROE adjusted for preferred stock — net income net of preferred dividends, divided by common equity. Equals ROE when no preferred outstanding.

Direction: Higher better Category: returns

Inputs (XBRL fallback chains):

• equity: StockholdersEquity -> StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest
• net_income: NetIncomeLoss -> ProfitLoss
• preferred_dividends_declared: PreferredStockDividendsAndOtherAdjustments -> PreferredStockDividends
• preferred_stock_value: PreferredStockValue

Returns None when: Returns None when Net income or prior-FY equity anchor is missing.

Source code

Implementation: return_on_common_equity in src/eqtytrk/metrics/ratios.py (or valuation.py for multiples).