SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?


To: E_K_S who wrote (75884)7/26/2024 12:53:54 PM
From: Paul Senior  Read Replies (1) | Respond to of 78748
 
Any stocks you might suggest that have favorable RONTA's now ripe for investing?



To: E_K_S who wrote (75884)7/27/2024 5:04:49 PM
From: bruwin  Read Replies (1) | Respond to of 78748
 
"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".