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Technology Stocks : Nimbus CD International -- Ignore unavailable to you. Want to Upgrade?

To: SIer formerly known as Joe B. who wrote (1528)	5/14/1998 2:01:00 PM
From: Don Dorsey	Read Replies (1) \| Respond to of 1673

You are describing return on investment. Return on equity does not consider share price. It calculates the amount of earnings a company generates (i think it is earnings, it may be something such as revenues) compared to its total equity. Management has no direct control over a company's stock price, but can control its earnings, so return on equity is used to measure the effectiveness of management. I think the discrepancy in ROE for the two sites is that the 38% figure is forward looking.