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thank you itamp;#39;s been called by some investors the ultimate ratio so what is return on Equity all about and does it deserve those kinds of plaudits well who thinks this is a fantastic ratio whatever it is and weamp;#39;ll look at it in a moment amongst others legendary investor Warren Buffett chairman of boxer Hathaway the primary test of managerial economic performance the primary test you once said is the achievement of a high earnings rate on Equity Capital employed more about exactly what he means there in a moment but return on Equity is the primary test crikey thatamp;#39;s quite an Accolade more concise this is the mother of all ratios is one way itamp;#39;s been described in the financial times lexicon all right Iamp;#39;ll try and hint at why that might be in a moment and thirdly another source of praise the ratio legendary Japanese investor why takida a tycoon and private investor in Japan one of the most successful ever by some accounts the good picks he said recen