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 ROIC

Another metric that you can use is called return on equity or ROE. It's an easy metric to use to see how efficiently a company reinvests. The higher the ratio, the more earnings it will generate from the equity of the business. So let's say Apple has 30%. That means that they generate 30 cents for every dollar of equity that they create.

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