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A Refresher on Return on Assets and Return on Equity

Harvard Business Review

Technology companies have very few assets so they’ll often have high ROAs. What is Return on Equity (ROE)? Unlike ROA, you want the ROE to be as high as possible, but there are limitations. ” How do companies use ROA and ROE? What mistakes do people make when using ROA and ROE?

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How Companies Can Use Investors to Their Advantage

Harvard Business Review

He asked one former major investor for a reaction to the company’s prediction (accompanying poor quarterly results): “that the [current] market contraction will bottom out soon and our profits will improve.” It would implement targets linked to shareholder value, including ROE and ROIC.

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Idle Funds are the Devil's Playground

Harvard Business Review

Regarding the latter, we point to some well-documented and broadly perceived shifts in the geography, demography, and technology of global economic activity. vision of financial world order; as Time magazine reported, he was "bursting with hubris over its booming equity markets and its just-announced 5.6%

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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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