No. of Recommendations: 1
ROE is not the same as return on total capital which is not necessarily the same as return on assets (ROA)

clearest example is a bank Granite (GRAN) has about a 2% return on assets but because it is leveraged up (as are all banks) its return on equity is about 12%.

Return on capital is a bit valgue to me - I think the fool did some measure like return on invested capital ROIC which a search might turn up, but 'capital' is a pretty unspecific term - which leads onto the fact that I *guess* that 'Equity Capital' is the same as 'Equity'

... as usual the advice is worth what you paid for it ;)

peter xyz
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