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"A company with a negative return on capital can't generate enough free cash flow to pay dividends and enhance the value of the firm over time".
The trouble with relying on total shareholder returns is that these figures can rise even after a company has shown an economic loss — a negative return on capital — over an extended period.
These backward companies collectively suffer a negative return on capital and are a big reason why Japan's slump persists.
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Although investment efficiency has been improving, particularly in the growing private sector, many state firms which account for much of the over-investment still earn negative returns over-investment still
For two divisions of a bank that is currently delivering NEGATIVE return on equity to adopt strategies which would in due course require more capital does not appear remotely sensible.
A bank cannot accept a negative return on its assets.
My favorite is NVR, which has a 60percentt return on capital, a negative debt-to-capital ratio and $18 in cash per share on their balance sheet.
The list of eight companies that generated a negative net return on invested capital, ranked by the amount of executive pay, is above.
To illustrate this point, Organizational Capital Partners generated a list of eight large companies that for each of the five years through December 2012 generated a negative net return on invested capital.
Return on capital is the second test.
This is about return of capital, not return on capital.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com