3min chapter

The Investing for Beginners Podcast - Your Path to Financial Freedom cover image

IFB300: Listener Q&A – Finding Tax Documents & Our Favorite Financial Websites

The Investing for Beginners Podcast - Your Path to Financial Freedom

CHAPTER

How to Measure Return on Equity of a Company

Instead of using net income, you could use operating income and measure that against the equity of the company. But this is a big but: If you do something like that, you have to do it with other companies in the same industry. A company with a higher ROE versus a company with a lower ROE all else equal is going to be able to grow much easier.

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