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Strategies & Market Trends : Value Investing

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To: E_K_S who wrote (75884)7/27/2024 5:04:49 PM
From: bruwin  Read Replies (1) of 78725
 
"Any thoughts? .... Here is what Perplexity AI thinks: ..... RONTA=Net Income / Net Tangible Assets.
Net Tangible Assets are calculated by subtracting intangible assets (such as goodwill and intellectual property) and liabilities from total assets."

Sounds like a fairly long-winded conclusion which is, in reality :-

Net Income/Total Shareholders Equity where "Total Shareholders Equity" is a line item on the Balance Sheet and is the Total of the LHS of the Balance Sheet equation :-

Share Capital + Retained Income = Total Assets - Total Liabilities.




In this post .....

Message 29804904

.... under "LIABILITIES", the last line of that section shows that Buffet prefers to see that Ratio as high as possible and preferably >25%, and can be found in Chapter 48 of "Warren Buffett and the Interpretation of Financial Statements".
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