Fitness + Finance = Fitnance

Explaining a fitness hack using the Return on equity (ROE) concept to a Finance-major friend of mine.

According to studies, one with muscles is likely to lose more fat than one with no muscles by running the same distance.

When debt is introduced into the capital structure, it is likely to improve the ROE. ROE is obtained by dividing net income to equity.

Running a business with debt improves the return on equity. Similarly, running after building muscles improves fat loss.

Fat loss is ROE and muscle is debt.

Orginally published on LinkedIn