Archive for June, 2023

Depreciation: Depreciation Dilemmas: Coping with Negative Returns on Assets

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Investors should avoid pausing their 401(k) contributions during a bear market, recession or market downturn. The loss in compounding earnings typically outweighs any potential for savings you think you’re getting by keeping the cash out of your retirement savings. It can only become zero is the company goes bankrupt.

Case Studies: High vs. Low ROA Companies

  • … The higher the ROE, the more efficient a company’s management is at generating income and growth from its equity financing.
  • Financial ratios offer a standardized method ...
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