The Importance of ROA, ROE, ROIC, and CAGR

Although the title of this week's investing newsletter may sound like an alphabet soup, the four things represented are some of the most important concepts to know if you are running a business or investing your money in a business (either by purchasing ownership in the form of common stock or lending it money in the form of bonds).

Someone forward you this email? No Sweat! Sign up here to get your own If you're having trouble viewing this email, click here Follow Us The Importance of ROA, ROE, ROIC, and CAGR Although the title of this week's investing newsletter may sound like an alphabet soup, the four things represented are some of the most important concepts to know if you are running a business or investing your money in a business (either by purchasing ownership in the form of common stock or lending it money in the form of bonds). Joshua Kennon Investing for Beginners Expert How to Calculate Return on Assets or ROA In this updated part of one of my investing lessons, I want to walk you through the two different ways you can calculate return on assets. READ NOW Return on Equity (ROE) Is Key When Analyzing Financial Statements Let me teach you how to use the income statement and balance sheet to calculate return on equity. READ NOW Focus on Return on Capital When Analyzing the Quality of a Firm All else equal, the better the business, the higher the return on invested capital it will generate for owners. READ NOW How to Calculate Total Return and Compound Annual Growth Rate Knowing how to perform the calculation that allows you to analyze your investment performance is a huge benefit.  Let me walk you through the process. READ NOW Featured Articles • Do These 5 Things Before Starting a Website • Inspirational Easter Morning Service at Starbucks? • 12 Low Cost Business Ideas You Can Launch This Weekend • 5 Ways to Get Paid to Travel • 26 Printables to Help You Save Money • 10 Simple Ways to Foster Creativity in Your Small Business • Internet Scams You Should Be Aware Of • Can You Cook a Frozen Ham without Thawing It? Advertisement About Investing for Beginners  |  Follow Us You are receiving this newsletter because you subscribed to the Investing for Beginners newsletter. If you wish to unsubscribe, please click here 1500 Broadway, 6th Floor, New York, NY, 10036 © 2015 About.com - All rights reserved. Privacy Policy.

Share this post