"I thought you raised ROIC as a preference over ROE. Give me...

"I thought you raised ROIC as a preference over ROE. Give me your numbers on the assets direct".

roe i don't really look at to deep except for financials ddm ect it's a subset number. roic is better but both returns are effected by book value - goodwill. So you can deduct it out and look at it or leave it(there has been a debate going on for years about goodwill and roic) in but it's all subjective to the company. roic would be better for a company with no aquistion history and a company with one roa for wes would be a better asset measurement. A power to book ratio would also make wes look cheaper than wow because of goodwill.

the thing is most companies growth assets are not represented on the book since they represent returns from
expected future investment. The market price includes the value of growth assets and goodwill should be a larger number for growth companies like if you bought wow.
How much goodwill for the coles aquisiton was for growth?

but the thing about roa(operational assets) is there is no dodgy accounting of return measures. I'll post numbers later cheers