Boring Companies, Exciting Returns
Motley Fool Money
00:00
Understanding Return on Invested Capital and the Snap Test
This chapter explores the importance of return on invested capital (ROIC) as a financial metric that signifies efficient capital use and its impact on free cash flow and stock prices. It also discusses the varying relevance of ROIC for different types of businesses and the concept of the 'snap test' for assessing traditional companies.
Play episode from 06:50
Transcript
