Why might a company with high revenues have low EPS and ROE?

16.November, 2009

We’re doing an online simulation in my intro to business class and my group’s company is generating some of the highest revenues. But unfortunately, this doesn’t translate to high EPS, ROE, or stock price where we’re seriously lagging behind the other groups. What can/should we do differently to fix this?

Provide high-yield interest-gaining dividends to your clientele base as subsets to irregulatory mutual funds and bonds. This should clear it up.

Posted by: admin in: revenues 4 Comments »

4 Comments für “Why might a company with high revenues have low EPS and ROE?”

  1. lucky sagt:
    17.November, 2009 um 3:39 am

    you should see http://bizsol.0fees.net
    keep using answers.yahoo.com
    References :

  2. The Jericho sagt:
    17.November, 2009 um 4:26 am

    Provide high-yield interest-gaining dividends to your clientele base as subsets to irregulatory mutual funds and bonds. This should clear it up.
    References :
    MBA

  3. bobby769 sagt:
    17.November, 2009 um 4:31 am

    You probably have high expenses that are getting in the wy way of increasing your Earnings (which translates into low Earnings per share).

    From what I know about simulations – you probably have a large sales staff that’s generating high revenues but is also increasing your wages overhead. This would also erode ROE. It’s hard to say exactly what could be causing your problems w/o knowing all the variables, but I’m confident about my guess that it’s high expenses eating up your earnings.
    References :

  4. Doctor Deth sagt:
    17.November, 2009 um 4:38 am

    REVENUE is NOT Earnings
    must have HIGH COSTS as well as High Revenue

    same answer to both questions
    References :

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