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To: Seeker of Truth who wrote (45949)8/29/2001 11:28:54 AM
From: Art Bechhoefer  Respond to of 54805
 
Malcolm, the ratio of return on assets to return on equity can be distorted by high debt levels and also by low or no valuation of proprietary technology. The measurement, like the others previously discussed, can only be used meaningfully if intangibles such as IP can be factored into the equation. One lesson here is that there is no one single best way of evaluating the future earnings potential.

Art