It means that return on investment would be, if they were in a situation where they would return everything to shareholders, of 1.2%. That's very weak for a company valued at multi-billions, and it is not clear how they can generate much more profits in the upcoming years.
That's what I am talking about.
And Twitter is one of the better ones, by the way.
To get an idea of their potential profits :
http://www.businessinsider.com/heres-what-twitters-2012-oper... "Annualized, that operating profit could be as much as $116 million this year. (Assuming the numbers are true, of course.)"
It means that return on investment would be, if they were in a situation where they would return everything to shareholders, of 1.2%. That's very weak for a company valued at multi-billions, and it is not clear how they can generate much more profits in the upcoming years.
That's what I am talking about.
And Twitter is one of the better ones, by the way.