This chapter explores the concept of Return on Equity (ROE) and its importance in evaluating a company's financial health. It breaks down the basics of ROE, explaining its calculation using financial statements, and emphasizes the significance of investing in companies with no debt for clearer assessments. The discussion also highlights practical examples, including IBM's impressive ROE, to illustrate the real-world implications of this key financial metric.
How to apply a businesses "Return On Equity" (ROE) to determine competitive advantage. For show notes and more information visit www.ruleonepodcast.com
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