Return on Equity (#ROE) and Return on Capital Employed (#ROCE) are two important Financial Ratios used in #FundamentalAnalysis of Stocks.
#StockMarket #Investing
Thread 🧵explaining #ROE & #ROCE and its use in #FundamentalAnalysis
(Must read for #FA learners)
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#FundamentalAnalysis #StockMarket
Return on Equity (#ROE) and Return on Capital Employed (#ROCE) are two important Financial Ratios used in #FundamentalAnalysis of Stocks.
#StockMarket #Investing
Return on Equity (ROE) is the ratio of Net Income (Net Profit) of a company and it’s Total Equity (Shareholder's Equity).
Here - Shareholders Equity = Share Capital + Reserves & Surplus.
#StockMarket #Investing #FundamentalAnalysis
#ROE is a measure of how much net profit a company is making for every rupee invested by its shareholders in the company.
It can be said that higher the ROE, better it is for the equity shareholders. It tells shareholders about how effectively their money is being used.
However, you should not trust high ROE blindly. Biggest drawbacks or weaknesses of ROE is that it completely ignores debt.
Hence for companies having high levels of debt, ROE will give a higher but misleading value & therefore we need to look at #ROCE along with #ROE.
Return on Capital Employed is ratio of company’s Operating Profit i.e., Profit before Interest & Taxes (EBIT) and its Total Capital Employed.
Here - Total Capital Employed = Shareholder’s Equity + Short Term Debt + Long Term Debt
#StockMarket #Investing #FundamentalAnalysis
Since #ROCE measures how much profit a company generates with its total capital employed, it overcomes a major weakness of ROE.
It can be said that higher the ROCE, the better it is. It means that business is profitable & company is utilizing its capital more economically.
ROCE is a long term profitability ratio because it shows how effectively company’s assets are performing while taking into consideration long term financing.
This is why ROCE is a more useful ratio than ROE to evaluate the longevity of a company.
#StockMarket #Investing
@WarrenBuffett prefers to invest in companies which have both #ROE and #ROCE above 20%.
✅He also prefers that value of ROE and ROCE should be close to each other.
❎He avoids investing in companies where there is a large difference between ROE and ROCE.
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— Sarah Frier (@sarahfrier) November 15, 2018
In the spring and summer of 2016, as reported by the Times, activity we traced to GRU was reported to the FBI. This was the standard model of interaction companies used for nation-state attacks against likely US targeted.
In the Spring of 2017, after a deep dive into the Fake News phenomena, the security team wanted to publish an update that covered what we had learned. At this point, we didn’t have any advertising content or the big IRA cluster, but we did know about the GRU model.
This report when through dozens of edits as different equities were represented. I did not have any meetings with Sheryl on the paper, but I can’t speak to whether she was in the loop with my higher-ups.
In the end, the difficult question of attribution was settled by us pointing to the DNI report instead of saying Russia or GRU directly. In my pre-briefs with members of Congress, I made it clear that we believed this action was GRU.
First thread of the year because I have time during MCO. As requested, a thread on the gods and spirits of Malay folk religion. Some are indigenous, some are of Indian origin, some have Islamic
Before I begin, it might be worth explaining the Malay conception of the spirit world. At its deepest level, Malay religious belief is animist. All living beings and even certain objects are said to have a soul. Natural phenomena are either controlled by or personified as spirits
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Contact with ancient India brought the influence of Hinduism and Buddhism to SEA. What we now call Hinduism similarly developed in India out of native animism and the more formal Vedic tradition. This can be seen in the multitude of sacred animals and location-specific Hindu gods
i wonder if you can make a thread bout witchcraft in malaysia.. or list of our own local gods/deites..
— r a y a \U0001f319 (@lcvelylilith) February 20, 2020
Before I begin, it might be worth explaining the Malay conception of the spirit world. At its deepest level, Malay religious belief is animist. All living beings and even certain objects are said to have a soul. Natural phenomena are either controlled by or personified as spirits
Although these beings had to be respected, not all of them were powerful enough to be considered gods. Offerings would be made to the spirits that had greater influence on human life. Spells and incantations would invoke their
Animist ceremonies of a religious or magical nature were normally held for the purpose of divination or making a request. This would either be done at a keramat or at a shrine similar to the Thai spirit houses or Chinese roadside shrines pic.twitter.com/I1hliyi0x3
— \u2745\u1710\u170b\u1713\u170e (@uglyluhan) June 16, 2019
Two known examples of such elemental spirits that had god-like status are Raja Angin (king of the wind) and Mambang Tali Arus (spirit of river currents). There were undoubtedly many more which have been lost to time
Contact with ancient India brought the influence of Hinduism and Buddhism to SEA. What we now call Hinduism similarly developed in India out of native animism and the more formal Vedic tradition. This can be seen in the multitude of sacred animals and location-specific Hindu gods