Return on capital metrics should deal with the following three challenges:
1 Asset Age: Provide a fair comparison between old (heavily depreciated) and new companies
2. Asset Life: Correct for the differences between short and longer life firms (technology vs industrial)
3. Inflation: Correctly deal with inflation to provide a fair comparison across countries and time
The webinar will explain very clearly how a family of return metrics, starting with Return on Equity (RoE), followed by Return on Invested Capital (ROIC), Cash Flow Return on Gross Investment (CROGI), Cash Flow Return on Inflation Adjusted Gross Investment (CROGI) and finally, Cash Flow Return on Investment (CFROI®) deal with the three issues above.
We hope you can join us.