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Performance Measurement

Strategy Driven

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.

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Even for Companies, the U.S. Is Split Between Haves and Have-Nots

Harvard Business Review

companies’ return on invested capital (ROIC), and compare it with economy-wide ROIC estimates constructed by Deloitte. Economywide ROIC has trended downward since the 1980s, falling from above 6% in the mid-1960s to 5% in 1980, then to 3% in 1990, and to only a bit more than 1% by 2010. An increasing number of U.S.

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