Glenn Greenberg
A handful of businesses that earn a lot on very little capital.
| Measure | Formula | Median | Middle half | Reporting it |
|---|---|---|---|---|
| Return on capital employed | Operating income ÷ (equity + total debt) | 10.2% | 5.6% – 16.7% | 444 |
| Free cash flow | Operating cash flow − capital expenditure | $746.10m | $87.12m – $2.61bn | 526 |
| Debt to equity | Total debt ÷ shareholders’ equity | 0.79x | 0.39x – 1.45x | 442 |
Where each comes from
| Return on capital employed | Returns on the capital a business actually uses, described as the first thing he looks at. |
|---|---|
| Free cash flow | Cash generation, as the evidence the returns are real. |
| Debt to equity | Businesses that do not need borrowing to produce those returns. |
Source: Brave Warrior letters and his Columbia Business School interviews.
What this cannot tell you
He runs a very concentrated book and knows each holding in depth. Neither the concentration nor the depth is computable.
This page describes a published method and applies its measures to filings. It is not a score, not a ranking and not a recommendation, and no page here aggregates these into a verdict. · All 11 metrics