No. of Recommendations: 3

ROE / ROA - The notion of management effectiveness is very important, but not as important as its evolution time (I believe a lot of MF articles have aproached that in the recent past). Another thing that I don't think that it's stressed enough is the impact of capital expenditure on ROA. I see a lot of people failing to grasp the big diference beetween the ROE and the ROA of some companies (in the very recent past that included me).

ACGL's ROA = 6.29%
ACGL's ROE = 19.94%

(Past ROE and ROA are missing but I will do my best to include this in the near future)

Here you go:
Return on Inv Cap 6.6% 2.6% 2.7% (1.4%) (4.1%)
Return On Equity 16.4% 3.9% 2.2% (2.9%) (10.2%)
Return On Assets 5.0% 1.8% 1.7% (2.7%) (4.1%);31/12/2002;31/12/2001;31/12/2000;31/12/1999
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.