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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Father E. who wrote (31328)	2/27/1998 6:33:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 176388

Father E., ROI is calculated by dividing the current period earnings by the previous period's equity. It is a poor measure of performance, however, since it includes the effects of leverage. A better comparison is to use ROA (return on assets). Compute earnings before taxes, interest, depreciation and amortization (so-called EBITDA) and divide that by the previous periods total assets. I don't think I've ever seen numbers comparable to DELL's performance. DELL is truly outstanding in this regard. Paul