Flash Economics Economic Research author Patrick Artus would have us look at return on capital differently – instead of financial (equity) capital, physical capital affords us a whole new perspective on evaluating investments across the developed countries such as the U.S., U.K., France, Italy, Germany, Spain and Japan. Financial versus Physical Capital The analyst suggests we look beyond the funneled view of return on equity (which serves only the shareholders) to return on physical capital, which is the aggregate return made by a company on all its different forms of financing, whether loans or capital. The problem with equity oriented…
Evaluating Return On Capital From A New Perspective
HFA Staff
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