Remove Debt to Equity Ratio Remove Human Resources Remove Marketing Remove ROE

End the Religion of ROE

Harvard Business Review

corporation than "what's the ROE on that?" Return-on-equity hurdles threaten them all. Conversely, why market cigarettes? ROE justifies the means. We think there's more to business success — and that something as straightforward as a simple equation could put capitalism on a better path. A hundred years ago, the focus on squeezing every drop of return out of equity capital made great sense. There is no more powerful question in a U.S.

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