Chapter
Understanding Return on Invested Capital (ROIC) for Industrial Startups
00:00 - 28:19 (28:19)
This podcast episode discusses the importance of understanding ROIC for industrial startups, which is crucial for valuating these businesses and competing against established companies like Boeing and Airbus in highly competitive markets. The conversation between the hosts also covers the financialization of P&L and the impact on the decline of American manufacturing.
Clips
In this podcast episode, the importance of ROIC (return on invested capital) in running a business and valuing businesses is discussed.
00:00 - 28:19 (28:19)
ROIC
Summary
In this podcast episode, the importance of ROIC (return on invested capital) in running a business and valuing businesses is discussed. The host and guest mention how it is a fundamental principle of investing that is often poorly understood, but crucial to consider when building and valuing real things.