XXX key XXXX throughout this XXXX XX that the author XXXXXXXX XXXX if XXXXXXXXX analysts XXX managements XXXXX XXXXXX XXX XXX they XXXXXXXX economic XXXXXXXXXXX to XXXXXXX XXXXXXXX per share and XXXXXX XXXXXXX, XX XXXXXXX XX XXX achievement XX a high earnings rate XX XXXXXX capital XXXXXXXX, businesses and their XXXXXXXXXXX XXXXX XX XXXXXXXXXX much better.
In XXX XXXXXXXXX XX XXXX XXXX, the author XX XXXXXXXX XXXX XXXXXXXXX XXX XXXXXXXX in earnings per share. XXXX state XXXX “we XXXXXX XXXX XX an improper figure XXXX XXXXX to focus”. XXXXXX XXX XXXXXXXXX XXXX period XX 1978-XXXX, XXXXX XXX XXXX XXXX capital XX XXXX XXXX, XXXXXXX, XXX XXXXXXXXXXX XX using XXXX XXXXXXX worsened; XXXXXXXXX, the XXXXXXXX per share XXXXXXXXX XX XXXX. This is XXXXXXX of the dividend payout ratio. XXXXXXXX payout ratio is XXX fraction of XXX income a firm XXXX XX its stockholders in dividends: XXX XXXX of XXX earnings not paid XX investors XX left for XXXXXXXXXX to provide XXX future XXXXXXXX XXXXXX. Therefor the XXXXX XXX dividend XXXXXX ratio, the more XXXXX is XXXXX invested XXX future earnings. The author then discusses XXXX the current “XXXXXXX test” of XXXXXXXXXX XXXXXXXX performance XX the XXXXXXXXXXX of a XXXX XXXXXXXX XXXX on equity capital employed. XXX author XXXXXXX XXXXXX XXX XXXXXX XXXX XXXXXXXXXX XXXXX be better understood XX they XXXXXXXX XXXX XXXXXXX emphasis to reflect earnings XXX XXXXX and yearly changes.
XX you have XXX other questions, XX not XXXXXXXX to message me.
"XXX XXXXXXX test XX XXXXXXXXXX economic XXXXXXXXXXX is the XXXXXXXXXXX of a high XXXXXXXX rate XX equity capital XXXXXXXX (XXXXXXX XXXXX XXXXXXXX, accounting gimmickry, etc.)"
For XXXXXXX, if I XX a XXXXXXXXXXX in XXXXXXX companies XXX I XX XXXXXXX to invest in a XXX XXXXXXX, I XXX look XX company X XXX company B. I would XXXXXXXX XXXXX XXX XXXXXXXXX XX XXXXXX XXXXX I XXXXXX XXXXXX in, which XX the more successful XXXXXX. XXX XXX XXXX XX XXXX now XX by XXXXXXXXX whether or not the company has a XXXX XXXXXXXX rate XXX the amount XX capital they have employed. This would be a XXXXX. XXXXXXXX rate: capital XXXXXXXX. If company A XXX XXX XXXXXX ratio, I XXXXX XXXXXX choose to XXXXXX in XXXX. The XXXXX XX this XXXXX is to say that XXXX XXX XX XXXXXXXXXXX and XXXXXXXXXX XX rate businesses' XXXXXXX should XX XXXXXXXX XX a XXXXXX XX instead measuring XXXXX earnings XXX XXXXX. XXXX XXX XXXXX effectively create a much better XXX XXX XXXXXXXXX and current XXXXXXXXXXXX XX XXX how well the XXXXXXXX XX XXXXXXXXXX.