ROIC gets all the attention, but reinvestment rate decides who actually compounds
ROIC tells you how efficiently a company compounds, but reinvestment tells you how long it can.
Sounds like the real flywheel is when high returns meet long runways.
Bulls eye 🎯
Read this,
Link :
https://open.substack.com/pub/absolutetoal/p/growth-and-roic-relationship?utm_source=share&utm_medium=android&r=5g11d4
Perhaps a silly question, but how are you defining the reinvestment rate here?
ROIC tells you how efficiently a company compounds, but reinvestment tells you how long it can.
Sounds like the real flywheel is when high returns meet long runways.
Bulls eye 🎯
Read this,
Link :
https://open.substack.com/pub/absolutetoal/p/growth-and-roic-relationship?utm_source=share&utm_medium=android&r=5g11d4
Perhaps a silly question, but how are you defining the reinvestment rate here?