Tag
#ratios
3 articles
- Education
The P/E Ratio Is Not Enough: Six Numbers to Read With It
The P/E compresses a business into one number and loses the detail. Six companions, growth, returns, cash, debt, cycles, share count, restore the picture.
- Education
What Is ROCE? Return on Capital Employed, Explained with Indian Examples
ROCE measures how efficiently a business turns the capital it uses into operating profit. It is EBIT divided by capital employed, and higher, steadier is better.
- Education
Return on Equity (ROE) Explained: Why a High Number Can Mislead
ROE is net profit divided by shareholders equity. It shows profit earned on owners money, but a high figure can hide debt rather than signal a better business.