Return on Capital ratios for unprofitable companies
How important are ROE/ROIC/ROCE etc. ratios for companies that are losing money? Specifically when thinking about earlier stage tech companies that are attempting to gain market share and are losing money in the short run. Also when attempting to predict debt ratios how much time would one spend trying to predict future the capital structure of these companies?
I'm asking from an equity research capacity, do most institutional investors put weight into these ratios for companies that won't be free cash flow positive for another 3-5 years.
Incidunt molestiae eos sint harum ut ipsam quia libero. Voluptas ut vel nihil fugiat accusantium aut est. Ipsa voluptas itaque et non ut odit blanditiis.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...