Remove CAPEX Remove Cost of Capital Remove Depreciation Remove Fixed Assets
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Finally, Proof That Managing for the Long Term Pays Off

Harvard Business Review

These indicators and hypotheses were: Investment: The ratio of capex to depreciation. ” Economic profit represents a company’s profit after subtracting a charge for the capital that the firm has invested (working capital, fixed assets, goodwill). Earnings quality: Accruals as a share of revenue.