WOW 0.14% $35.68 woolworths group limited

Mango5So investment in goodwill over time doesn't require a...

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    Mango5

    So investment in goodwill over time doesn't require a return? That is quite ridiculous.

    The goodwill on the balance sheet of WES is there from past acquisition - ie it represents real capital invested over time.

    I agree with your point that the ROIC does not reflect the return an investor who buys stock in either company today would achieve, it is a historical measure of effectiveness in allocating capital.

    What it does show however is that over time WOW have allocated capital in a more judicious manner, surely you can't deny this fact?

 
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