Remove Debt to Equity Ratio Remove Finance Remove Globalization Remove Hedge
article thumbnail

End the Religion of ROE

Harvard Business Review

DuPont sent Donaldson Brown, a promising engineer-turned-finance staffer, to Detroit to sort things out, and sort them out he did. Brown noted a simple fact: Return on equity can be broken down into a three-part equation. Thus Brown not only sowed the seeds of the today's hated silos, he also set three "runaways" in motion.

ROE 12