11. La rentabilidad de “nuestro” dinero invertido en la empresa: la ratio “roe”

Company Financial Overview

Initial Investment and Profit

• The company generated a net profit of 20 million in its first year, starting with an initial investment of 300 million.

• This investment was financed by contributions from partners totaling 100 million and loans amounting to 200 million.

Key Variables for Viability

• Two key variables for a company's viability are positive net profit and sufficient cash flow.

• A third critical variable is achieving adequate returns on investment.

Understanding Return on Equity (ROE)

Calculation of ROE

• The return on equity (ROE) is calculated as net profit divided by equity, multiplied by 100. In this case, it results in a 20% return based on the initial investment of 100 million.

Contextualizing ROE

• A ROE of 20% can be considered adequate depending on market conditions; historical context shows that during high inflation periods, such as in Peru, this percentage may not reflect true profitability.

Evaluating Adequacy of Returns

Market Comparison

• In Europe today, where interest rates are near zero, a ROE of 20% is viewed as very favorable compared to other investments available in the market.

Perception vs. Reality

• Despite reporting a satisfactory ROE, there’s a need to consider total investments made (300 million), which includes both personal contributions and borrowed funds.

Transitioning to Return on Assets (ROA)

Need for Broader Metrics