Month: October 2024
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Boards, Advisors, Coaches and Mentors
Ever feel like running a business is a lonely endeavor? When starting or running a business, going it alone certainly allows for more control but comes at the expense of added stress. I’ve heard some experts say that every business owner should have a coach, or mentor, or some other support. But what does that…
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Capital Allocation Part III: Return on Capital
We’re wrapping up a 3-part series (here’s part I and part II) on capital allocation – the effective use of profits and cash flow – with a concept called Return on Invested Capital (ROIC). [Sometimes just called return on capital or ROC.] First, a quick reminder of our balance sheet – we buy or build assets for the purpose…
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Capital Allocation Part II: Cash Sources and Uses
Sources & uses of cash This is Part 2 of a series on capital allocation. A quick recap from last week: We defined the 3 uses of profits as capital allocation. They are: Where we left off was how to assess capital allocation… let’s cover one of the best methods for evaluating capital allocation, a tool we refer to…