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Financial Metrics that Actually Drive Profits
Motley Fool Money
The Power of the Return on Invested Capital
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i do want to talk a little bit and briefly about the power of the return on invested capital calculation. If you assume we have two companies, areay, company a and company b, that both aim to grow their earnings at a rate of five % per year. They don't rely on other people's money for their growth. Then i said, they likely operate in an alegoply or duopoly with limited competition, wide moates and very high barriers too. And im one of those that i do want to drill down on, just because this is a segment on on key performance indicators, pis and ke a, metrics that drive value.
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