 Ahrenl
join:2004-10-26 North Andover, MA
·Verizon FIOS
| reply to TKJunkMail Re: The real answer is...Yes...and No
As a good measure of a company, but not measure of return. The return to investors generated by the company is the ROE. ROA intermixes the return on assets that may have been generated by debt issuance, retained earnings, or, ahem, legislative handouts. Of course your nominal ROA on free assets will be lower, as they cost you nothing and distorted your NPV/IRR decision process.
Btw, welcome back from the "ignore posts" limbo... |