return on invested capital
also referred to as: roic
5 statements across 2 episodes · 4 bullish · 0 bearish · 2 people on the record · first statement Mar 12, 2018 by Cameron Hight · across every show →
Everything said about return on invested capital, oldest first
Mar 12, 2018 positive
Hight: Process discipline correlates with ROIC from 9% down to 0%
“The top was around nine percent return on invested capital. The second was like seven. The next was like three. The bottom was like zero. And there is a distinct correlation, at least in our small sample size. Once again, keeping in mind the small sample size,…”
Mar 12, 2018 positive
May 7, 2018 positive
Black: Expanding low-ROIC firms outperform stagnant high-ROIC companies
“We prefer a company, frankly, that would have maybe five years ago had a four percent ROIC growing to five, six, seven, eight. That's a much better investment. Than a company that's at a 12% ROIC that might be stagnant over that period of time and not growing.”
May 7, 2018 positive
Black: 5-year ROIC trajectory correlates directly with stock performance quintiles
“There is a one-to-one correlation between the direction of the ROIC over a five-year period of time and stock performance. You know, so if you break the market down into five quintiles from the top quintile where they have the most rapidly rising ROICs to the …”