Five Ways to Raise ROE

According to Warren Buffett, there are only five ways to increase a company’s ROE.

1. Increase asset turnover (ratio between sales and assets).
2. Widen operating margins.
3. Pay lower taxes.
4. Increase leverage.
5. Use cheaper leverage.

That’s from The Warren Buffett Way.

Posted by on May 20th, 2014 at 12:28 am


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