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Dialogue. Meta and Floor & Decor Update, Calculating ROIC on AI spend, New Mature Store Unit Economics Revealed

The Synopsis

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Analyzing Free Cash Flow and Capital Expenditures: Growth vs. Maintenance

This chapter explores the dynamics of normalized free cash flow and capital expenditures in a key business, focusing on the trade-offs between necessary spending for current operations and investments aimed at future growth. It provides insights into depreciation, return on invested capital, and how these factors impact earnings per share in light of high capital expenditures.

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