Tag: Return on Invested Capital

ROIC Is A Good Measure of M&A Effectiveness

ROIC Is A Good Measure of M&A Effectiveness

Return On Invested Capital ("ROIC") is my preferred measure for analyzing how well acquisitions perform post close. My formula is not textbook and uses a couple of variations. The first uses operating cash flow, the second uses revenue in the numerator. The denominator in both instances consists of purchase consideration (cash, equity and debt), legal … Continue reading ROIC Is A Good Measure of M&A Effectiveness

Cult of CEO Personality & Implications for Stock Prices

Cult of CEO Personality & Implications for Stock Prices

We at CEORater have highlighted the importance of CEO personality in terms of its influence on corporate strategy, operational and financial performance and thereby implications for stock prices. Don't take our word for it, there's plenty of published research from various academic institutions including the work of David Larker and Charles O'Reilly, both of Stanford … Continue reading Cult of CEO Personality & Implications for Stock Prices