Posted by kcchongnz > 2013-03-25 19:03 | Report Abuse

Posted by houseofordos > Mar 24, 2013 11:34 PM | Report Abuse I have a general question, ROE is calculated by shareholder equity = Assets - Liabilities. Couldnt the ROE numbers look better if companties over-value their assets. Posted by kcchongnz > Mar 25, 2013 12:42 PM | Report Abuse X houseofordos equity = Assets - Liabilities. With assets overvalued, it means equity will be bigger. As ROE=NI/Equity, Hence ROE will be smaller, hence not looked better. Posted by iafx > Mar 25, 2013 01:30 PM | Report Abuse sigh, don't mix up owner equity to shareholder equity, wrong roe calculation can lead to Holland... of cos, not for those with "agenda" Posted by iafx > Mar 25, 2013 03:10 PM | Report Abuse understand first r u a common share holder, or owner of the company? should the answer is obvious, so is the inappropriate use of e=a-l above Posted by houseofordos > Mar 25, 2013 04:09 PM | Report Abuse iafx, if I buy the stock, I am considered owner of the company right (even if its 0.0001%)? what is the difference between owner of the company and common share holder ? Posted by iafx > Mar 25, 2013 04:29 PM | Report Abuse really? think again. there's a section in bs about shareholders funds, learn fr there what common shares mean, what right u have vs the owner Posted by iafx > Mar 25, 2013 06:06 PM | Report Abuse house, u can find the correct def & use of roe with the trading tools, e.g equities tracker etc. believe it or not, the above is flaw. a hint already given: total shareholders funds, some study u will findout the truth. already, he is using yr words to cover his ass