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To: Z man who wrote (6403)8/18/1998 7:26:00 AM
From: John Chew  Respond to of 7054
 
Quiz Time: Return on sales vs return on capital
Take two companies: Company A and Company B.
Company B has a much smaller return on sales,
but a 50% higher return on capital.
What company would you invest in?

Company A Company B
Sales 10 100
Capital 2 2
Profit 1 1.5
Ret.on sales 0.1 0.015
Ret.on Capital 0.5 0.75

With Actrade's declining return on sales, shorts hould
aggressively go short here.

Remember, thinking never hurt.