Strategy Driven

JULY 13, 2011

Supplementing profits with ROIC and revenue growth is a step in the right direction to ensure that the profits a business earns are actually creating value, not simply over-consuming capital that another company could better deploy. However, profits, ROIC, and revenue growth are backward looking.

ROIC 62

ROIC Balanced Scorecard Metrics McKinsey 62

Harvard Business Review

AUGUST 27, 2015

The worldwide trend of rising economic inequality applies not only to individuals. companies’ return on invested capital (ROIC), and compare it with economy-wide ROIC estimates constructed by Deloitte. In 1960, only a tiny proportion of major American firms earned an ROIC of 50% or more. There are many.

ROIC 8

ROIC McKinsey GDP Company 8

Harvard Business Review

DECEMBER 19, 2011

Retail store asset productivity has been in decline since the recession of 2007 and we believe that this trend will accelerate over the coming years. For mass market retailers who understand this and react quickly, this upheaval is survivable. Online retailers, meanwhile, are exploiting their distinct advantages over physical stores.

ROIC 12

ROIC Retail Mass Marketing Price 12

Harvard Business Review

MAY 28, 2018

He asked one former major investor for a reaction to the company’s prediction (accompanying poor quarterly results): “that the [current] market contraction will bottom out soon and our profits will improve.” It would implement targets linked to shareholder value, including ROE and ROIC.

Company 9

Company ROIC CFO Restructuring 9

Harvard Business Review

MAY 24, 2017

According to Bain’s Macro Trends Group, the global supply of capital stands at nearly 10 times global GDP. A veritable alphabet soup (ROA, RONA, ROIC, ROCE, IRR, MVA, APV, and the like) exists to measure our financial capital. Financial capital is relatively abundant and cheap. How can we manage human capital better? Measure it.

Human Capital 15

Human Capital Management Company ROCE 15