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Showing posts with label ROIC. Show all posts
Showing posts with label ROIC. Show all posts
Sunday, 14 December 2025

This is a solid, time-tested value investing checklist suitable for long-term investors seeking to build wealth steadily while avoiding big mistakes.

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  This chart outlines   Terry Smith's investing philosophy , as summarized by Brian Feroldi. Smith is a well-known value-oriented fund m...
Wednesday, 31 May 2017

Valuing High Growth Companies

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The recommended standard valuation principles apply to high-growth companies too. There is a difference in the order of the steps of the ...
Tuesday, 30 May 2017

Alternative Measures of Return on Capital

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The primary measure of return on capital is return on invested capital (ROIC). ROIC = net operating profit less adjusted taxes (NOPLAT) ...
Monday, 29 May 2017

Reorganizing the Financial Statements

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A proper assessment of financial performance requires reorganizing financial statements to avoid traps like double counting, omitting cash ...

Analysing Performance begins with an analysis of the Key Drivers of Value: ROIC and Revenue Growth.

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The key drivers of value are: ROIC, and Revenue Growth. The analysis of performance and competitive position begins with an analysi...
Saturday, 27 May 2017

Conservation of Value and the Role of Risk. Increasing value through reducing the company's risk and its cost of capital.

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Cash flow drives a firm's value creation. Growth and ROIC generate cash flow. Value creation Companies create value: when th...
Friday, 26 May 2017

How good is the company in creating value for its shareholders? How much value can it create?

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The chief measures for judging a company are its ability to create value for its shareholders and  the amount of total value it creates...

Fundamental Principles of Firm's Value Creation

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Value creation is determined by cash flows. Cash flows are driven by   revenue growth and  return on invested capital (ROIC). Fo...
Wednesday, 24 May 2017

The Stock Market is Smarter than We Think

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The only 2 drivers of value creation are: Return on Invested Capital (ROIC)  Growth Return on invested capital (ROIC) and growth a...

The basic source of value creation is competitive advantage. A High ROIC is the result of a Competitive Advantage.

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A High ROIC is the result of a Competitive Advantage The basic source of value creation is competitive advantage. A high ROIC is the...
Tuesday, 11 April 2017

Return on Capital Employed

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For example: Capital employed $5 million Annual profit after tax $1 million Return on capital employed 20% The profit may be expresse...
Thursday, 31 December 2015

Cost leadership

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Companies with large fixed costs and able to deliver their products most efficiently have a strong advantage and can achieve superior finan...
Monday, 18 May 2015

Is McDonald's Losing Its Economic Castle?

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Is McDonald's Losing Its Economic Castle? May. 17, 2015 6:35 PM ET    |    7 comments    |    About:   McDo...
Thursday, 15 January 2015

Investment in Giant Enterprises. But how successful are they from the standpoint of the investor?

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Let us take a look at the top listed companies in the stock market with either the highest assets or highest sales.  All of these enterprise...
Wednesday, 22 October 2014

How to Pick Fundamentally Strong Stocks

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Sunday, 12 October 2014

Slow and steady doesn't make headlines, but the company can continue to earn excellent returns on invested capital.

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CTB operates worldwide in the agriculture equipment field.  Berkshire purchased it in 2002 and by 2009, it has picked up six small firms. ...
Thursday, 11 October 2012

Growth can either ADD or DETRACT from an investment's value/

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Growth in sales, earnings, and assets can either add or detract from an investment's value. Growth can add to the value when the re...
Friday, 3 February 2012

3 Investing Traps -- And How To Avoid Them

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These tips should help you sidestep some common accounting pitfalls. Alcoholics have 12 steps. Grievers have five stages. Investors have ...