Total Shareholder Return is another Key Performance Indicator (KPI) showing what value shareholders are receiving from their business.

This KPI shows the change in capital or value of a listed or quoted company over time, typically one year.

It is calculated as follows:  ((Share price at the end of the year – share price at the start year) + Dividends and cash payments) / Share price at beginning of the year)).

For unlisted entities this calculation can still be used if you are able to value the business at both points in time.

The benefit of this calculation is that it factors in both income and capital appreciation / depreciation of the business.
 

If you would like to discuss further please contact us:
McNamara and Co - Chartered Accountants, located minutes from the Melbourne CBD
www.mcnamaraandcompany.com.au/contact-us
Phone +61 3 9428 1062
Email  admin@mcnamaraandco.com

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