Business Quote by Benjamin Graham
“To see how much a company is truly earning on the capital it deploys in its businesses, look beyond EPS to Return on Invested Capital (ROIC).”
About This Quote
Source Book: Security Analysis, Benjamin Graham, 1934
True profitability is measured by how efficiently a company uses its capital, not just earnings per share.
In simple terms: Look beyond earnings to capital efficiency.
Key Takeaway
Focus on return on invested capital.
Themes
finance
investment
analysis
Mood
analytical
pragmatic
Type
financial
educational
When to use this quote
- stock selection
- portfolio management
- corporate finance
Key Concepts
ROIC
capital efficiency
valuation metrics
Questions to Reflect On
- How does ROIC compare to other metrics?
- What industries benefit most from ROIC focus?
A Different Perspective
ROIC can be hard to calculate for some firms.
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