Return on assets, equity and investment-GH current numbers reflect TLV's big measures of how well a company extracts profits from its assets, shareholder equity, and revenues. First two are "efficiency" measures of how well assets and equity are deployed, last is profit per dollar revenue, so measure of how well dollars are spent to produce revenue each measured period.
Anyone ever been part of a discussion blending these numbers into a weighted average, according "weight" to the more importantant (qualitative I know) in order?
I would argue equity is more important that assets base, so it gets a 3 weighting, then assets gets a 2 while ROI should stand on its own so to speak.
Weighted average would become a simpler comparative that stresses efficiency at using assets and equity,
| roa | 11.61 | 2 | 23.22 | | |
| roe | 19.8 | 3 | 59.4 | | |
| roi | 13.89 | 1 | 13.89 | | |
| | | | 96.51 | 6 | 16.085 |