Companies with more women on their boards outperformed rivals, with a 42% higher return on sales, a 66% higher return on invested capital and 53% higher return on equity.
Below-average return on capital and equity than its peers, along with potential rig oversupply could be problematic for the Swiss company.
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DiMicco's own compensation involves three-year performance metrics tied to return on equity, return on capital and revenue growth relative to steel industry peers.
"You get a lower pretax margin, but you get as high, or probably over time, a higher return on equity because its less capital-intensive, " says Napoli, referring to the Private Client unit.
Among them: return on equity (ROE), and return on total capital (ROTC).
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The strategy I base on WarrenBuffettWarren Buffett's approach to investing likes Pacific Sunwear because it has a very strong brand name, strong earnings predictability (EPS rose in nine out of the last 10 years), no debt, 18.2% return on equity over the last 10 years, an 18.1% return on total capital over the last 10 years and a management that has earned shareholders 22.8% on retained earnings.
Yet even the really big firms are paying staff a lot but barely making acceptable profits on their newly enlarged capital bases Goldman's return on equity (ROE) was 10% in the third quarter.
The strategy I base on Warren Buffett 's approach to investing likes Pacific Sunwear because it has a very strong brand name, strong earnings predictability (EPS rose in nine out of the last 10 years), no debt, 18.2% return on equity over the last 10 years, an 18.1% return on total capital over the last 10 years and a management that has earned shareholders 22.8% on retained earnings.
Besides profit, other financial targets include return on equity, cash flow and return on invested capital.
Many lenders reckon they will end up making a return on equity in the low teens, above their cost of capital.
Without the leverage that comes from borrowing, the return on equity for these companies is too low to attract and retain capital.
All businesses are allocated capital and are measured by their risk-weighted return on equity.
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The ability of American companies steadily to improve their return on equity had much to do with their ability to raise other kinds of capital cheaply, and only when necessary.
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The return on equity is a measure of profitability that looks at how much profit a company generates with each euro of capital invested by shareholders.
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