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A Refresher on Return on Assets and Return on Equity

Harvard Business Review

What is Return on Equity (ROE)? Unlike ROA, you want the ROE to be as high as possible, but there are limitations. Knight explains that “one company may have a higher ROE than another company because it borrowed more money and therefore has greater liabilities and proportionately less equity invested in the company.

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Leading by Cause

Lead Change Blog

He opened the dialogue, saying he and his leadership team had put a lot of thought into where they want to take their bank, and the vision they committed to was to deliver top decile ROE, ROA and topline revenue growth: a quintessential example of focusing on effect, not cause.

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Don't Confuse Engagement with User Experience

Harvard Business Review

The Android operating system has been outselling Apple's iOS by nearly a 5:1 ratio. But much of the firm's success arguably emerges from the experiential reality that its products, services and marketing efforts align around engagement behaviors — downloading music and apps, Siri, games, etc. The numbers don't lie.

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End the Religion of ROE

Harvard Business Review

corporation than "what's the ROE on that?" Conversely, why market cigarettes? ROE justifies the means. To an extent not widely recognized, it was an equation in the first place that gave ROE the power to dominate not just investment decisions, but an entire business culture. There is no more powerful question in a U.S.

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