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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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Death Knell for the Category Killers?

Harvard Business Review

During the current recession, overall consumer spending has declined or held flat, sales per square foot have not improved significantly, and retailers' return on invested capital (ROIC) has suffered dramatically. The most obvious victims of this shift so far are music, video, and book sellers.

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How Companies Can Use Investors to Their Advantage

Harvard Business Review

” This feedback helped Oka, an industry outsider, convince President Kazuo Ushida, a 40-year veteran of Nikon’s technology businesses, that the company needed to revisit its dialogue with investors. It would implement targets linked to shareholder value, including ROE and ROIC.