Is your business truly creating value or just chasing growth? Discover the vital link between strategy and finance through Return on Invested Capital (ROIC). Learn why mere profitability isn’t enough, as 70% of bankrupt companies still turned a profit. Uncover the financial levers that can elevate thriving businesses above those merely surviving. If scaling your business with precision is the goal, this discussion provides insights you won't want to miss!
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insights INSIGHT
Value Creation Fundamentals
Value creation comes from exceeding investment costs with future cash flows' present value.
Consider time and opportunity costs when assessing returns.
volunteer_activism ADVICE
Beyond Profit
Don't just focus on profit or even free cash flow alone.
Consider free cash flow relative to your return on invested capital and cost of capital.
insights INSIGHT
ROIC and Value Creation
Increasing cash flow doesn't guarantee value creation; ROIC must exceed the cost of capital.
Strategic focus should be on achieving higher ROIC than capital costs.
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Are you building a business that truly creates value, or just chasing growth?
In this episode, Steve breaks down the powerful connection between strategy and finance—and why Return on Invested Capital (ROIC) is the key to long-term success. Discover why profitability alone isn’t enough, how 70% of bankrupt companies were still making a profit, and the crucial financial levers that separate thriving businesses from those stuck in survival mode.
If you’re serious about scaling with precision and maximizing value, this is an episode you can’t afford to miss. Tune in now!
Disclaimer: The views expressed here are those of the individual Coltivar Group, LLC (“Coltivar”) personnel quoted and are not the views of Coltivar or its affiliates. Certain information contained in here has been obtained from third-party sources. While taken from sources believed to be reliable, Coltivar has not independently verified such information and makes no representations about the enduring accuracy of the information or its appropriateness for a given situation.
This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult your own advisers as to those matters. References to any securities or digital assets are for illustrative purposes only, and do not constitute an investment recommendation or offer to provide investment advisory services. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendations. The Company is not affiliated with, nor does it receive compensation from, any specific security. Please see https://www.coltivar.com/privacy-policy-and-terms-of-use for additional important information.
Building Margin