Thursday, October 26, 2006

Conventional wisdom teaches us that a fool and his money are soon parted

Based on this example, the first company is better at converting its investment into profit. Godrej Consumer Products Ltd. (GCPL) emerges as the numero uno in the RoA, followed by Nestle India and ICSA (India). Godrej has a three year average ROA of 1.36 (over an average asset base of Rs.680 million), Nestle has an average ROA of 0.79 (over an average asset base of Rs.3.45 billion) and ICSA, which is into power utilities & energy management business, has a ROA of 0.72 (over an average asset base of Rs.78.4 million).

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Source:- IIPM Editorial

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