![]() yr avgĬash Return on Capital Employed' (CROCE')įirm Earnings ÷ Capital employed (Greenblatt). yr avgĬompares Free Cash Flow to the Firm with capital invested in the company.įree Cash Flow to the Firm ÷ Capital Employed. Net income From Continuing Operations (IAT) ÷ Capital Employed. Measures how efficiently Capital Employed is being used to produce Adjusted Earnings for equity stakeholders.Īfter Tax Return on Capital Employed (AT ROCE)Ĭompares earnings with capital invested in the company. yr avgĪdjusted After Tax Return on Capital Employed (Adjusted AT ROCE) yr avgĬompares earnings with capital employed, using Capital employed as defined by Greenblatt.ĮBIT ÷ Capital employed (Greenblatt). yr avgĪdjusted Return on Capital Employed (Adjusted ROCE)Ĭompares adjusted operating income with capital employed, using capital employed as defined by Greenblatt.Īdjusted Operating Income ÷ Capital employed (Greenblatt). Measures how much owner earnings per dollar the business generates from invested capital. Measures how much available cash flow per dollar the business generates from invested capital. Measures how much Adjusted Earnings per dollar the business generates from invested capital.Īdjusted Earnings ÷ Invested Capital. ![]() The net return the firm achieves for the capital it uses in its operations.Īdjusted Return on Invested Capital (ROIC) Measures how efficiently the assets of a company have Facilitates comparing firms from different industries and with different capital structures. yr avgĪ company's financial performance indicator that measures the gross operating cash flow a company produces with its gross investment. Measures how efficiently Tangible Assets are being used to produce Owner Earnings. Measures how efficiently tangible assets are being used to produce cash for equity and debt stakeholders. Measures how efficiently total assets are being used to produce cash for equity and debt stakeholders.ĮBITA return on Tangible Assets (EBITA ROTA)ĮBIT return on Tangible Assets (EBIT ROTA) yr avgĬash-NOPAT Return On Assets (Cash-NOPAT ROA) Measures how efficiently total assets are being used to produce cash for equity stakeholders.Ĭash Flow from Operations ÷ Total Assets. Useful number for comparing competing companies in the same Profitable a company is relative to its total assets. Measures operating efficiency apart from tax and leveraging factors. It is gaining credibility in value investing circles because it provides valuable and predictive qualitative analysis when combined with valuation metrics. yr avgĮvidence that a company has sustainable competitive advantages. Shows the number of times cash is turned over in an accounting period. ![]() ![]() Measures how fast a company is selling inventory and is generally compared against industry averages. Revenue ÷ Net Property, Plant and Equipment. This makes it important to compare the ratio to the historical levels along with peer company or industry averages. ![]() There is no number that determines whether a company is doing a good job of generating revenue from its fixed assets. Measures a company's ability to generate net sales from fixed-asset investments - specifically property, plant and equipment (PP&E) - net of depreciation. There is no number that determines whether a company is doing a good job of generating revenue from its assets. termĪsset turnover measures a firm's efficiency at using its assets in generating revenue. Indicators expressing profitability and efficiency of the company, based on investment. ![]()
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