I have a facebook page where I explain all the necessary concept to know in order to become a great investor. Check it out here www.facebook.com/groups/66042.... This is really amazing. I love ChatGPT. It's a powerfull tool. I'm going to build a backtesting framework for trading algorithms. What do you think ? let me know in the comments below.
2 years ago | 0
Bargain Investor
💹Return On Invested Capital Explained by Eminem !!!
ChatGPT is all over the news. It's a system that can do anything for you. Recmmending what to it, search for information, build start up, writing rap songs... So I asked ChatGPT to explain Return On Invested Capital but in Eminem style! Here is the conversation.
Me: Explain Return On Invested Capital in Eminem Style.
GPT: Give me the 🎤, Yo, it's your boy Slim Shady, and I'm here to break down this thing called Return on Invested Capital. ROIC for short, ya dig? Basically, it's a measure of how much money a company is making on the money that its shareholders have invested in it. The higher the ROIC, the better the company is at turning its capital into profits.
📝Here's how to the math yo: you take the company's net income and divide it by the sum of its shareholders' equity and its long-term debt. So if a company has net income of $100 million and total shareholders' equity and long-term debt of $500 million, its ROIC would be 20%. But here's the thing: a high ROIC doesn't always mean a company is doing well. You gotta look at the whole picture, ya know? So don't just blindly invest in a company because it has a high ROIC. Do your homework, yo
👉Here are some examples of how you can use ROIC:
• Let's say you're considering investing in Company A and Company B. Both companies have similar net incomes, but Company A has a higher ROIC than Company B. This could mean that Company A is more efficient at turning its capital into profits, so it might be a better investment.
• You could also use ROIC to compare a company's performance over time. Let's say Company C has a ROIC of 20% this year, but last year it was only 10%. This could mean that the company is improving its ability to generate profits from its invested capital, which could be a good sign for investors.
• You could also use ROIC to compare a company to its competitors. Let's say Company D has a ROIC of 30%, while its main competitor has a ROIC of 20%. This could mean that Company D is more efficient at generating profits, which could give it an advantage in the market.
Me: Close the conversation with Eminem bars.
GPT: Okay, let me drop some bars on ROIC real quick
It's a measure of a company's profitability, don't be thick
Calculate it by dividing net income by equity and debt
A high ROIC is good, but don't forget to do your due diligence before you invest.
Those bars bro 🔥🔥🔥
#chatGPT #Eminem #ReturnOnInvestedCapital #InvestingForBeginners #HowToStartInvesting #StockMarket #fun
2 years ago (edited) | [YT] | 1