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.
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