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I think you should look at return on assets, return on equity is too easily skewed by leverage.
by mohawk 17y ago
I think you should look at return on assets, return on equity is too easily skewed by leverage.
- 10ren 17y agoHow so? I thought debt will cancel out in calculating net equity (e.g. you borrow $100 million to buy a $100 million plant, and the net equity is unchanged).