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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?


To: chaz who wrote (32702)10/1/2000 10:02:25 PM
From: Mike Buckley  Read Replies (1) | Respond to of 54805
 
Chaz and Malcom,

Instead of focusing on sales or earnings per employee, my suggestion for that sort of analysis is to focus on return on invested capital. Compare that to the company's cost of capital. Determine the difference and you know how well the company is using its cash resources.

--Mike Buckley



To: chaz who wrote (32702)10/2/2000 1:33:52 PM
From: Seeker of Truth  Read Replies (1) | Respond to of 54805
 
Profit per employee is more ambiguous. There are so many ways to calculate profit. Also the company may be piling up intellectual assets which do not yet appear as profits. Of course profit per employee is interesting too, as are a bunch of other numbers. The derivative of the sales per employee with respect to time is IMHO the most interesting thing. In the end we must judge using both non quantified aspects as well as quantified, right?