Banducci: "Senator, as I've said, the way we measure our performance and profitability is our return on investment and total shareholder return. I do recognise that financial institutions might have different ways they do things. But that's not the way we do it. This is the way we measure it and it's the right way to measure it in the context of the industry we operate in."
McKim: "I'm not asking you how you do it, Mr Banducci. You're entitled to do whatever you like. But when you're before a Senate committee, my advice to you is to answer the questions that are put to you by the chair of this committee. So leaving aside what your preferred measure is … do you accept that ROE, return on equity, is a standard and accepted measure of the profitability of a company?"
Banducci: "Senator, we measure return on investment, which we think is the right way of measuring profitability in a company. You put $1 in and what return do you get out? In our case, we get 10 cents out from the dollar we put in and I don't think it's a coincidence that our total shareholder return over the last five years is also 10 per cent, which becomes a 3 per cent dividend back to our hard-working retail shareholders."
McKim: "Last chance, Mr Banducci. Do you accept that return on equity is an accepted measure of the financial profitability of a company?"
Banducci: "Senator, we measure return on investment. We think that is the right way to measure profitability in the grocery sector. I'm not commenting on financial services. I'm commenting on the sector that I operate in."
The ABC's transcript. Banducci didn't actually say no , he said no about 5 different ways. But not good enough for that bullying tosser McKim. So the answer to his idiot question that Banducci should have given was, "no it is not an appropriate measure, as anybody who had a clue would know " . Sounds like the Coles woman wiped the floor with him.
