From CROIC to Wisdom to Finding Ideas

(via www.oldschoolvalue.com)

ROE ROIC and CROIC
Forget ROE and use ROIC. Most people use ROE (Return on Equity) as a measurement of performance but ROE has a big drawback.
As you can see, book value is the denominator which means that if book value was to be reduced, the ROE would in fact increase. How would this happen? If a...

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