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To: 911Turbo who wrote (120881)4/27/1999 4:52:00 PM
From: Chuzzlewit  Read Replies (1) | Respond to of 176387
 
No, they seem to be incorrect, in part because they fail to adjust for one-time charges like writeoffs for in-process R&D as the result of mergers, or merger and acquisition costs. They also don't measure ROIC at all. And I suspect that the denominator is wrong in their calculations: the denominator must be the previous year's base. For example, if you measure ROE you must use the return for the period divided by last year's s/h equity (not this year's).

They don't show their method so I can't tell you exactly where the error is -- only that the calculation is wrong.

Hope this helps. BTW, it isn't that difficult to do it yourself. The exercise is worthwhile.

TTFN,
CTC