• 29. What is Return On Equity - Warren Buffett's Favorite Number

    Download Preston's 1 page checklist for finding great stock picks: http://buffettsbooks.com/checklist Preston Pysh is the #1 selling Amazon author of two books on Warren Buffett. The books can be found at the following location: http://www.amazon.com/gp/product/0982967624/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=0982967624&linkCode=as2&tag=pypull-20&linkId=EOHYVY7DPUCW3WD4 http://www.amazon.com/gp/product/1939370159/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=1939370159&linkCode=as2&tag=pypull-20&linkId=XRE5CA2QJ3I2OWSW In this lesson, we learned the importance of buying a company that has a strong return on equity. Since the market price of the stocks you buy is dependent on the dividends and the growth of the book value, we can quickly learn that a c...

    published: 07 Jul 2012
  • ROE (Return On Equity) Explained

    What ROE means when evaluating a business and how to calculate ROE?

    published: 15 Dec 2014
  • What is return on equity? - MoneyWeek Investment Tutorials

    Like this MoneyWeek Video? Want to find out more on equity returns? Go to: http://www.moneyweekvideos.com/what-is-return-on-equity/ now and you'll get free bonus material on this topic, plus a whole host of other videos. Search our whole archive of useful MoneyWeek Videos, including: · The six numbers every investor should know... http://www.moneyweekvideos.com/six-numbers-every-investor-should-know/ · What is GDP? http://www.moneyweekvideos.com/what-is-gdp/ · Why does Starbucks pay so little tax? http://www.moneyweekvideos.com/why-does-starbucks-pay-so-little-tax/ · How capital gains tax works... http://www.moneyweekvideos.com/how-capital-gains-tax-works/ · What is money laundering? http://www.moneyweekvideos.com/what-is-money-laundering...

    published: 08 Feb 2012
  • What is Return on Equity? - MoneyWeek Videos

    When you analyse a company, it's easy just to focus on how much profit a company is making. But that can be a dangerous trap. A business might generate a decent profit, but still deliver a poor return on shareholders equity. So in this video, we explain how to calculate Return On Equity and why it could be useful to you. Click here to subscribe to MoneyWeek videos: http://tinyurl.com/zg57szy

    published: 29 Nov 2013
  • Return on Equity (ROE) Example explained

    Simple & effective "warren buffet" style to identify stocks using Return on Equity (ROE)

    published: 03 May 2014
  • Key Financial Metrics and Ratios: ROA, ROE, and ROIC

    Learn key financial metrics & ratios to analyze companies financial statements. By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" You’ll learn about the key metrics and ratios used to analyze companies’ financial statements, including Return on Equity (ROE), Return on Assets (ROA), and Return on Invested Capital (ROIC), as well as Inventory Turnover, Receivables Turnover, Payables Turnover, the Current Ratio, and the Asset Turnover Ratio. Table of Contents: 1:15 Why Metrics and Ratios Matter 4:58 Return on Equity (ROE), Return on Assets (ROA), and Return on Invested Capital (ROIC) 10:50 Asset-Based and Turnover-Based Ratios 14:40 Interpretation of Key Metrics and Ratios for Wal-Mart, Amazon, and Salesforce 19:32 ...

    published: 20 Jan 2015
  • Tim Bennett Explains: How debt affects equity returns

    Debt has a direct impact on the return you can expect to get from a share says Tim Bennett. In this short video he highlights why.

    published: 21 May 2014
  • Private equity returns

    See http://www.financialtrainingassociates.com/courses/private-equity/ for a course on LBOs and private equity

    published: 23 Jun 2010
  • Interest Rates and Equity Returns

    What will happen to equity returns if interest rates go up or down? Wei Dai, PhD, examined US market returns and a variety of interest rates and found the empirical relation has been weak and noisy.

    published: 26 Jun 2017
  • What is Return on Equity and Why is it Important in 2 minutes.

    What Return on Equity ROE means when evaluating a business and how to calculate ROE ?

    published: 30 Mar 2017
  • How to calculate Return on Equity

    Here’s an important question to ask about any investment you’re making: “Is this the best use of my money?” Let’s say you’ve invested $50,000 in a certain stock that’s yielding 2.75% per year, and you find a different stock with a higher yield AND lower risk… it’s safe to say you’d probably be asking that question. It’s the same with your income-producing properties. You’ve got money invested in them, and they’re generating cash flow for you. The question is, should you keep that money (in the form of equity) sitting in that investment? Or is it time to find a different way to leverage it? And… how do you know? That’s where calculating Return on Equity (ROE) comes in. It’s a powerful number to determine for each of your properties, so you can know when to sell or otherwise use the mone...

    published: 23 Jun 2014
  • What is return on equity ratio?

    In order to calculate return on equity ratio follow the link: http://www.financialratioss.com/profitability-ratios/return-on-equity More info on other financial ratios can be found here: http://www.financialratioss.com Full description: What is return on equity? ROE is a ratio that indicates how well a company operates its' assets. It also reveals how much income a company gets in comparison with the shareholder's equity. Common Norms and limitations: It is considered that a ROE of at least 10% per year is not bad, 15% - good. ROE value norms can differ depending on the industry the company is operating in. Also it depends on the general economic situation of the specific country. During the economic crisis, ROE value of 5% can be consider as a good result. How to calculate retur...

    published: 12 Oct 2012
  • Where do equity returns come from?

    Arthur Heinmaa, Managing Partner at Toron outlines the three sources of return for an equity investment and examines what return investors can expect from major equity markets.

    published: 07 Nov 2007
  • Tim Bennett Explains: Is return on equity the ultimate ratio?

    Return on equity has been called the King of Ratios. In this short video I explain why before pointing out a few of its limitations.

    published: 29 Oct 2014
  • Power of Compounding Returns - Equity Stock Investments - bse2nse.com

    Video by http://bse2nse.com This video explains about the power of compounded returns and how equity investments can help you achieve it. For people who are interested in "Art of Stock Investing" and have the patience for long term investing, i strongly suggest you to read my Book @ http://bse2nse.com/archived/3185-book-art-stock-investing-indian-stock-market.html

    published: 08 Dec 2012
  • How To Compute Return On Equity

    Have you ever wanted to get good at math, business accounting. Well look no further than this guide on How To Compute Return On Equity . Follow Videojug's industry leaders as they steer you through this advice video. Subscribe! http://www.youtube.com/subscription_center?add_user=videojugeducation Check Out Our Channel Page: http://www.youtube.com/user/videojugeducation Like Us On Facebook! https://www.facebook.com/videojug Follow Us On Twitter! http://www.twitter.com/videojug Watch This and Other Related films here: http://www.videojug.com/film/how-to-calculate-roe

    published: 06 Apr 2011
29. What is Return On Equity - Warren Buffett's Favorite Number

29. What is Return On Equity - Warren Buffett's Favorite Number

  • Order:
  • Duration: 11:32
  • Updated: 07 Jul 2012
  • views: 83294
videos
Download Preston's 1 page checklist for finding great stock picks: http://buffettsbooks.com/checklist Preston Pysh is the #1 selling Amazon author of two books on Warren Buffett. The books can be found at the following location: http://www.amazon.com/gp/product/0982967624/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=0982967624&linkCode=as2&tag=pypull-20&linkId=EOHYVY7DPUCW3WD4 http://www.amazon.com/gp/product/1939370159/ref=as_li_tl?ie=UTF8&camp=1789&creative=9325&creativeASIN=1939370159&linkCode=as2&tag=pypull-20&linkId=XRE5CA2QJ3I2OWSW In this lesson, we learned the importance of buying a company that has a strong return on equity. Since the market price of the stocks you buy is dependent on the dividends and the growth of the book value, we can quickly learn that a company that grows it's book value at a faster pace is more valuable. When we assessed two different companies in the video, we created a situation where both companies had the exact same earnings. The difference between the companies was the size of their equity (or book value). When a company with a large amount of book value is compared to a company with less book value, the percent change in their growth will be much more difficult if earnings are similar. When a company consistently has a strong Return on Equity, we know as investors that the management of the company is properly reinvesting the earnings of the business into assets that will continue to grow the capital earned. This is very important since most of the earnings produced by a company are retained and not paid as a dividend. When a disciplined investor purchases companies with a sustained high ROE, their investments compound at a much higher rate than other assets. The great thing with purchasing companies with high ROEs is that it helps alleviate capital gains tax if the security is held for a long period of time.
https://wn.com/29._What_Is_Return_On_Equity_Warren_Buffett's_Favorite_Number
ROE (Return On Equity) Explained

ROE (Return On Equity) Explained

  • Order:
  • Duration: 7:35
  • Updated: 15 Dec 2014
  • views: 11943
videos
What ROE means when evaluating a business and how to calculate ROE?
https://wn.com/Roe_(Return_On_Equity)_Explained
What is return on equity? - MoneyWeek Investment Tutorials

What is return on equity? - MoneyWeek Investment Tutorials

  • Order:
  • Duration: 13:41
  • Updated: 08 Feb 2012
  • views: 70873
videos
Like this MoneyWeek Video? Want to find out more on equity returns? Go to: http://www.moneyweekvideos.com/what-is-return-on-equity/ now and you'll get free bonus material on this topic, plus a whole host of other videos. Search our whole archive of useful MoneyWeek Videos, including: · The six numbers every investor should know... http://www.moneyweekvideos.com/six-numbers-every-investor-should-know/ · What is GDP? http://www.moneyweekvideos.com/what-is-gdp/ · Why does Starbucks pay so little tax? http://www.moneyweekvideos.com/why-does-starbucks-pay-so-little-tax/ · How capital gains tax works... http://www.moneyweekvideos.com/how-capital-gains-tax-works/ · What is money laundering? http://www.moneyweekvideos.com/what-is-money-laundering/
https://wn.com/What_Is_Return_On_Equity_Moneyweek_Investment_Tutorials
What is Return on Equity? - MoneyWeek Videos

What is Return on Equity? - MoneyWeek Videos

  • Order:
  • Duration: 5:49
  • Updated: 29 Nov 2013
  • views: 12788
videos
When you analyse a company, it's easy just to focus on how much profit a company is making. But that can be a dangerous trap. A business might generate a decent profit, but still deliver a poor return on shareholders equity. So in this video, we explain how to calculate Return On Equity and why it could be useful to you. Click here to subscribe to MoneyWeek videos: http://tinyurl.com/zg57szy
https://wn.com/What_Is_Return_On_Equity_Moneyweek_Videos
Return on Equity (ROE) Example explained

Return on Equity (ROE) Example explained

  • Order:
  • Duration: 7:51
  • Updated: 03 May 2014
  • views: 1571
videos
Simple & effective "warren buffet" style to identify stocks using Return on Equity (ROE)
https://wn.com/Return_On_Equity_(Roe)_Example_Explained
Key Financial Metrics and Ratios: ROA, ROE, and ROIC

Key Financial Metrics and Ratios: ROA, ROE, and ROIC

  • Order:
  • Duration: 24:13
  • Updated: 20 Jan 2015
  • views: 58005
videos
Learn key financial metrics & ratios to analyze companies financial statements. By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" You’ll learn about the key metrics and ratios used to analyze companies’ financial statements, including Return on Equity (ROE), Return on Assets (ROA), and Return on Invested Capital (ROIC), as well as Inventory Turnover, Receivables Turnover, Payables Turnover, the Current Ratio, and the Asset Turnover Ratio. Table of Contents: 1:15 Why Metrics and Ratios Matter 4:58 Return on Equity (ROE), Return on Assets (ROA), and Return on Invested Capital (ROIC) 10:50 Asset-Based and Turnover-Based Ratios 14:40 Interpretation of Key Metrics and Ratios for Wal-Mart, Amazon, and Salesforce 19:32 Why the Key Metrics and Ratios Are Sometimes Not That Useful Why Metrics and Ratios? They let you evaluate and compare different companies, and see why one company might be worth more (higher valuation multiple) than others. They let you answer questions such as: How much equity is required to generate a certain amount of after-tax profit (Net Income)? How much in assets is required to generate a certain amount of after-tax profit (Net Income)? How much total capital is required to do this? How dependent is a company on its assets? How liquid is the company? Can it meet its obligations? How quickly does it sell all its Inventory, pay its outstanding invoices, and collect its receivables? ROA, ROA, and ROIC Return on Equity (ROE) = Net Income / Average Shareholders’ Equity Return on Assets (ROA) = Net Income / Average Assets Return on Invested Capital (ROIC) = NOPAT / (Total Debt + Equity + Other Long-Term Funding Sources) Return on Equity (ROE): How efficiently is a company using its equity to generate after-tax profits? Return on Assets (ROA): How well is a company using its assets / how dependent is it on them? Return on Invested Capital (ROIC): How well is a company using ALL its capital, or how much capital is required to grow its business? Here, Wal-Mart easily ranks #1 in all these metrics because it has a very high ROE of 20-25%, an ROA of close to 10%, and an ROIC of 13-14%; for Amazon and Salesforce, these numbers are negative or close to 0%. Asset-Based Ratios and Turnover-Based Ratios Asset Turnover Ratio = Revenue / Average Assets How dependent is a company on its asset base to generate revenue? Current Ratio = Current Assets / Current Liabilities How liquid is a company? Can it use its short-term assets to repay its short-term obligations, if required? Inventory Turnover = COGS / Average Inventory How many times per year does a company sell off all its Inventory? Receivables Turnover = Revenue / Average AR How quickly does a company collect its receivables from customers that haven’t paid in cash yet? Payables Turnover = COGS / Average AP (*) How quickly does a company submit cash payment for outstanding invoices? Interpretation of Figures for Wal-Mart, Amazon, and Salesforce On the surface, many of these metrics make Wal-Mart seem like a "better" company - much higher ROE, ROA, and ROIC, and Amazon is negative on some of those! Wal-Mart tends to have higher margins as well, and shows more consistency with those margins. Similar inventory management, but Wal-Mart collects from customers and pays invoices much more quickly than Amazon. Wal-Mart is levered a bit more heavily, though. And yet… Amazon is a much more expensive stock, or at least it was at this point in time, and the market values it much more highly based on metrics such as the P / E ratio. At the time of this analysis, Wal-Mart P / E Ratio = 16x, and Amazon P / E Ratio = 456x! How could that be possible? Is Amazon really nearly 30x as valuable as Wal-Mart with WORSE metrics? Answer: The "Revenue Growth" line tells the whole story here. You're comparing 2 very different companies – one is a mature, predictable, mostly slow-growing firm, and one is growing revenue at 20-30% per year, despite revenue in the tens of billions already. Admittedly, Amazon's valuation still seems ridiculous, but it's not that surprising it's valued more highly than Wal-Mart, given that it's growing 20-30x more quickly. The Bottom-Line: These metrics are MOST useful when comparing companies of similar sizes, growth rates, and margins – not as useful when you're comparing a high-growth company to a stable, mature firm. RESOURCES http://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-14-Key-Financial-Metrics-Ratios.xlsx http://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-14-Key-Financial-Metrics-Ratios.pdf http://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-14-Amazon-Financial-Statements.pdf http://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-14-Salesforce-Financial-Statements.pdf http://youtube-breakingintowallstreet-com.s3.amazonaws.com/105-14-Walmart-Financial-Statements.pdf
https://wn.com/Key_Financial_Metrics_And_Ratios_Roa,_Roe,_And_Roic
Tim Bennett Explains: How debt affects equity returns

Tim Bennett Explains: How debt affects equity returns

  • Order:
  • Duration: 7:54
  • Updated: 21 May 2014
  • views: 716
videos
Debt has a direct impact on the return you can expect to get from a share says Tim Bennett. In this short video he highlights why.
https://wn.com/Tim_Bennett_Explains_How_Debt_Affects_Equity_Returns
Private equity returns

Private equity returns

  • Order:
  • Duration: 5:18
  • Updated: 23 Jun 2010
  • views: 2297
videos
See http://www.financialtrainingassociates.com/courses/private-equity/ for a course on LBOs and private equity
https://wn.com/Private_Equity_Returns
Interest Rates and Equity Returns

Interest Rates and Equity Returns

  • Order:
  • Duration: 3:23
  • Updated: 26 Jun 2017
  • views: 170
videos
What will happen to equity returns if interest rates go up or down? Wei Dai, PhD, examined US market returns and a variety of interest rates and found the empirical relation has been weak and noisy.
https://wn.com/Interest_Rates_And_Equity_Returns
What is Return on Equity and Why is it Important in 2 minutes.

What is Return on Equity and Why is it Important in 2 minutes.

  • Order:
  • Duration: 1:37
  • Updated: 30 Mar 2017
  • views: 2768
videos
What Return on Equity ROE means when evaluating a business and how to calculate ROE ?
https://wn.com/What_Is_Return_On_Equity_And_Why_Is_It_Important_In_2_Minutes.
How to calculate Return on Equity

How to calculate Return on Equity

  • Order:
  • Duration: 8:14
  • Updated: 23 Jun 2014
  • views: 10976
videos
Here’s an important question to ask about any investment you’re making: “Is this the best use of my money?” Let’s say you’ve invested $50,000 in a certain stock that’s yielding 2.75% per year, and you find a different stock with a higher yield AND lower risk… it’s safe to say you’d probably be asking that question. It’s the same with your income-producing properties. You’ve got money invested in them, and they’re generating cash flow for you. The question is, should you keep that money (in the form of equity) sitting in that investment? Or is it time to find a different way to leverage it? And… how do you know? That’s where calculating Return on Equity (ROE) comes in. It’s a powerful number to determine for each of your properties, so you can know when to sell or otherwise use the money you’ve invested in them for higher profits. Here’s how it works… (For demonstration purposes and to simplify things, we’re not taking into account the principal buy-down on your property, and we’re using simple interest, not compound. Both items would affect your ROE. But here, we’re just laying out the basic process.) First, we’ll need to know your property’s selling price, your initial investment, annual cash flow, and the annual appreciation for our property. Here’s our example property’s profile: Price: $100,000 Money Down: $20,000 Cash Flow: $3,600 Appreciation: 5% per year Note that our initial Return on Investment is 18% ($3,600 / $20,000 = 18%). After the first year, our appreciated property value is $105,000 because of the 5% annual appreciation rate. Therefore, our equity is now $25,000 ($20,000 put down, plus $5,000 of appreciated value). We’re now ready to calculate our ROE. ROE is the percentage yielded by dividing our cash flow by the equity value of our property for a given year. So, for our Year 2, we will divide our cash flow of $3,600 by our equity value of $25,000. This gives us an ROE of 14.4%. Notice that while our Return on Investment is 18%, our Return on EQUITY has decreased to 14.4%. This is because our cash flow has remained the same, while our equity has increased. Next, we calculate our ROE for Years 3-5. With our 5% annual appreciation rate, that gives us the following results: Equity ROE Year 2: $25,000 14.4% Year 3: $30,000 12.0% Year 4: $35,000 10.2% Year 5: $40,000 9.0% In this case, the basic trend is pretty clear: in each year, as our equity grows, our Return on Equity decreases. Here’s why this is so useful to know… ROE helps us answer the question we opened with: “Is this the best use of my money right now?” In other words, do we want “stagnant” money, basically sitting here in the form of equity? Or do we want to use that money more profitably? Let’s take Year 5. At that point, we’ve cut our return in half – from 18% on our original investment to 9% on our equity. This is a good problem to have, because it means our property has increased in value. It’s just that we’re now wondering if we can put the equity we’ve built up to better use. For example, we could take $20,000 of our $40,000 in equity out, and use it to purchase another income-producing property. That would take the ROE on our original property back up to 18%, and we’d see something similar for our new property, depending on the purchase price, cash flow, etc. Or we could sell this property and use the money to purchase several similar properties, all with a higher ROE. Or we could re-finance. The point is that ROE gives us a simple and powerful reference point from which to evaluate our options. Knowing that we’re currently generating a certain rate of return on our equity, we can look at other investment possibilities and decide if it’s time to put that equity to work in other ways or not. ROE – it’s a simple number to calculate… and it gives a surprisingly large amount of helpful information. Have any questions? Give us a call at (801) 990-5109 or schedule an appointment to build a Wealth Plan http://wealthplan.setmore.com and we’ll walk you through this process and help you understand what your ROE can tell you about YOUR properties.
https://wn.com/How_To_Calculate_Return_On_Equity
What is return on equity ratio?

What is return on equity ratio?

  • Order:
  • Duration: 1:20
  • Updated: 12 Oct 2012
  • views: 7412
videos
In order to calculate return on equity ratio follow the link: http://www.financialratioss.com/profitability-ratios/return-on-equity More info on other financial ratios can be found here: http://www.financialratioss.com Full description: What is return on equity? ROE is a ratio that indicates how well a company operates its' assets. It also reveals how much income a company gets in comparison with the shareholder's equity. Common Norms and limitations: It is considered that a ROE of at least 10% per year is not bad, 15% - good. ROE value norms can differ depending on the industry the company is operating in. Also it depends on the general economic situation of the specific country. During the economic crisis, ROE value of 5% can be consider as a good result. How to calculate return on equity? Data to calculate this ratio is collected from the income statement and balance sheets. Who might be interested in return on equity? Return of equity ratio is important to the company's owners, as it shows the amount of profit that is returned to them.
https://wn.com/What_Is_Return_On_Equity_Ratio
Where do equity returns come from?

Where do equity returns come from?

  • Order:
  • Duration: 7:03
  • Updated: 07 Nov 2007
  • views: 1391
videos
Arthur Heinmaa, Managing Partner at Toron outlines the three sources of return for an equity investment and examines what return investors can expect from major equity markets.
https://wn.com/Where_Do_Equity_Returns_Come_From
Tim Bennett Explains: Is return on equity the ultimate ratio?

Tim Bennett Explains: Is return on equity the ultimate ratio?

  • Order:
  • Duration: 12:57
  • Updated: 29 Oct 2014
  • views: 1559
videos
Return on equity has been called the King of Ratios. In this short video I explain why before pointing out a few of its limitations.
https://wn.com/Tim_Bennett_Explains_Is_Return_On_Equity_The_Ultimate_Ratio
Power of Compounding Returns - Equity Stock Investments - bse2nse.com

Power of Compounding Returns - Equity Stock Investments - bse2nse.com

  • Order:
  • Duration: 4:46
  • Updated: 08 Dec 2012
  • views: 13993
videos
Video by http://bse2nse.com This video explains about the power of compounded returns and how equity investments can help you achieve it. For people who are interested in "Art of Stock Investing" and have the patience for long term investing, i strongly suggest you to read my Book @ http://bse2nse.com/archived/3185-book-art-stock-investing-indian-stock-market.html
https://wn.com/Power_Of_Compounding_Returns_Equity_Stock_Investments_Bse2Nse.Com
How To Compute Return On Equity

How To Compute Return On Equity

  • Order:
  • Duration: 4:55
  • Updated: 06 Apr 2011
  • views: 1866
videos
Have you ever wanted to get good at math, business accounting. Well look no further than this guide on How To Compute Return On Equity . Follow Videojug's industry leaders as they steer you through this advice video. Subscribe! http://www.youtube.com/subscription_center?add_user=videojugeducation Check Out Our Channel Page: http://www.youtube.com/user/videojugeducation Like Us On Facebook! https://www.facebook.com/videojug Follow Us On Twitter! http://www.twitter.com/videojug Watch This and Other Related films here: http://www.videojug.com/film/how-to-calculate-roe
https://wn.com/How_To_Compute_Return_On_Equity
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