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What percentage of retained earnings is reinvested as capital in business to increase operational earnings

Anurag Chopra's Profile

Warren Buffett says that rather than only looking at earnings, one most also look at the capital reinvested in the business to generate incremental earnings. Thus, i want to know that how can i calculate, what percentage/ amount of retained earnings was actually invested to increase operational revenue vs how was much was left as cash for use in future ?

Eg: If retained earnings is $100, did the firm use $20 / $40 etc as capital reinvestment in business to increase operational revenue ? How can we calculate the same?


Anurag Chopra
Title: Mgr
Company: ABC
(Mgr, ABC) |

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