{"id":5615,"date":"2025-06-16T21:27:06","date_gmt":"2025-06-16T11:27:06","guid":{"rendered":"https:\/\/murrayslatter.me\/?p=5615"},"modified":"2025-06-16T22:50:46","modified_gmt":"2025-06-16T12:50:46","slug":"return-on-invested-capital-roic","status":"publish","type":"post","link":"https:\/\/murrayslatter.me\/?p=5615","title":{"rendered":"Return on Invested Capital (ROIC)"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\">The Gold Standard of Capital Efficiency<\/h2>\n\n\n\n<p>In the world of financial and strategic investing, few metrics are as universally revered as Return on Invested Capital (ROIC). While earnings per share and revenue growth might grab headlines, ROIC quietly underpins the real measure of a company\u2019s quality: <strong>how effectively it turns capital into profits<\/strong>.<\/p>\n\n\n\n<p>For serious investors, operators, and capital allocators, ROIC isn\u2019t just a metric\u2014it\u2019s a mindset.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">\ud83d\udca1 What Is ROIC?<\/h3>\n\n\n\n<p>Return on Invested Capital is a <strong>performance metric<\/strong> that shows how well a company generates <strong>returns relative to the capital invested<\/strong> in the business. It answers the critical question: <em>\u201cFor every dollar invested, how much profit is being generated?\u201d<\/em><\/p>\n\n\n\n<p><strong>Formula:<\/strong> ROIC=Net&nbsp;Operating&nbsp;Profit&nbsp;After&nbsp;Tax&nbsp;(NOPAT)Invested&nbsp;Capital\\text{ROIC} = \\frac{\\text{Net Operating Profit After Tax (NOPAT)}}{\\text{Invested Capital}}ROIC=Invested&nbsp;CapitalNet&nbsp;Operating&nbsp;Profit&nbsp;After&nbsp;Tax&nbsp;(NOPAT)\u200b<\/p>\n\n\n\n<p>Where:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>NOPAT<\/strong> is a company\u2019s operating profit after tax (excluding interest and non-operating items).<\/li>\n\n\n\n<li><strong>Invested Capital<\/strong> typically includes equity and debt used to fund operations (often calculated as total assets minus non-interest-bearing current liabilities).<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">\ud83d\udcca Why ROIC Matters<\/h3>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>True Economic Profitability<\/strong><br>Unlike superficial metrics, ROIC accounts for the <em>opportunity cost of capital<\/em>. A business must beat its <strong>cost of capital<\/strong> to create value\u2014ROIC tells you if it\u2019s doing that.<\/li>\n\n\n\n<li><strong>Comparability Across Sectors<\/strong><br>ROIC allows apples-to-apples comparisons between companies with different capital structures, particularly helpful when evaluating capital-intensive vs. asset-light businesses.<\/li>\n\n\n\n<li><strong>Capital Allocation Health Check<\/strong><br>High ROIC companies are often <strong>disciplined allocators<\/strong>\u2014they reinvest wisely and tend to resist empire-building tendencies that destroy shareholder value.<\/li>\n\n\n\n<li><strong>Long-Term Compounding<\/strong><br>ROIC is the heartbeat of long-term compounding. When a company consistently earns high ROIC and reinvests a portion of its earnings, the result is exponential value creation.<\/li>\n<\/ol>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">\ud83d\udccc ROIC vs. Other Profitability Metrics<\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Metric<\/th><th>Focus<\/th><th>Shortfall<\/th><\/tr><\/thead><tbody><tr><td><strong>Net Profit Margin<\/strong><\/td><td>Measures efficiency of revenue conversion<\/td><td>Ignores capital intensity<\/td><\/tr><tr><td><strong>ROE (Return on Equity)<\/strong><\/td><td>Focuses on shareholder equity<\/td><td>Can be distorted by leverage<\/td><\/tr><tr><td><strong>ROA (Return on Assets)<\/strong><\/td><td>Looks at total assets<\/td><td>Doesn\u2019t account for financing method<\/td><\/tr><tr><td><strong>ROIC<\/strong><\/td><td>Focuses on returns from all capital used in the business<\/td><td>Most comprehensive<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>ROIC stands above because it incorporates both profitability <em>and<\/em> the capital required to achieve it.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">\ud83c\udfc6 What\u2019s a \u201cGood\u201d ROIC?<\/h3>\n\n\n\n<p>A ROIC <strong>greater than the company&#8217;s Weighted Average Cost of Capital (WACC)<\/strong> indicates value creation. Many great businesses\u2014think Apple, Visa, or Microsoft\u2014boast <strong>ROICs of 20%+<\/strong>, dwarfing their WACC. Meanwhile, low-ROIC businesses often struggle to beat even the cost of debt.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">\ud83e\udde0 Strategic Insight: ROIC as a Decision-Making Compass<\/h3>\n\n\n\n<p>For operators, ROIC is not just a rear-view mirror metric\u2014it\u2019s a <strong>capital deployment compass<\/strong>. Before committing to new projects, acquisitions, or expansions, ask:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cWill this generate a higher ROIC than our current average? Higher than our WACC? Higher than alternative uses of capital?\u201d<\/em><\/p>\n<\/blockquote>\n\n\n\n<p>If not, think twice.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">\ud83e\uddee Practical Use in Investment Analysis<\/h3>\n\n\n\n<p>In portfolio analysis or stock selection, apply ROIC to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Screen for quality<\/strong>: Only invest in businesses with consistently high ROIC.<\/li>\n\n\n\n<li><strong>Assess reinvestment rate<\/strong>: Pair ROIC with reinvestment rate to model future value creation.<\/li>\n\n\n\n<li><strong>Compare with WACC<\/strong>: ROIC \u2013 WACC = <em>Value Creation Spread<\/em>.<\/li>\n<\/ul>\n\n\n\n<p><strong>The wider the spread, the better the engine of compounding.<\/strong><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">\ud83d\udd0d Case Example<\/h3>\n\n\n\n<p>Consider two companies:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Company A<\/strong> earns 25% ROIC and reinvests 50% of earnings.<\/li>\n\n\n\n<li><strong>Company B<\/strong> earns 10% ROIC and reinvests 80%.<\/li>\n<\/ul>\n\n\n\n<p>Even though B reinvests more, A generates significantly more value because each reinvested dollar compounds at a higher rate.<\/p>\n\n\n\n<p>This is the essence of why <strong>high ROIC businesses with reinvestment opportunities dominate over time<\/strong>.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">\ud83e\udded Bottom Line<\/h3>\n\n\n\n<p>ROIC is not just a number\u2014it\u2019s a philosophy of discipline, strategic clarity, and operational excellence. For the long-term investor or business builder, understanding and applying ROIC can mean the difference between compounding wealth and chasing vanity metrics.<\/p>\n\n\n\n<p>Missed out on the <a href=\"https:\/\/murrayslatter.me\/?p=5292\">over all series<\/a>?<\/p>\n\n\n\n<p><strong>Murray Slatter<\/strong><\/p>\n\n\n\n<p>Strategy, Growth, and Transformation Consultant: <a href=\"https:\/\/outlook.office.com\/bookwithme\/user\/ffef0aaaf9ce4fa9bc29e062d1cb0d0f@qfactor.com.au?anonymous&amp;ep=bwmEmailSignature\">Book time to meet with me here!<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Or Signup for the Newsletter<\/h2>\n\n\n\n<div class=\"wp-block-leadin-hubspot-form-block\">\n\t\t\t\t\t\t<script>\n\t\t\t\t\t\t\twindow.hsFormsOnReady = window.hsFormsOnReady || [];\n\t\t\t\t\t\t\twindow.hsFormsOnReady.push(()=>{\n\t\t\t\t\t\t\t\thbspt.forms.create({\n\t\t\t\t\t\t\t\t\tportalId: 24391455,\n\t\t\t\t\t\t\t\t\tformId: \"03fd50b1-a049-4bdb-b064-cff39a5f75dd\",\n\t\t\t\t\t\t\t\t\ttarget: \"#hbspt-form-1775298937000-3694456443\",\n\t\t\t\t\t\t\t\t\tregion: \"na1\",\n\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t})});\n\t\t\t\t\t\t<\/script>\n\t\t\t\t\t\t<div class=\"hbspt-form\" id=\"hbspt-form-1775298937000-3694456443\"><\/div><\/div>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Gold Standard of Capital Efficiency In the world of financial and strategic investing, few metrics are as universally revered as Return on Invested Capital (ROIC). While earnings per share and revenue growth might grab headlines, ROIC quietly underpins the [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":5647,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[17,118],"tags":[],"class_list":["post-5615","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-master-class","category-mental-models-financial-investment","clearfix"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Return on Invested Capital (ROIC) - Murray Slatter<\/title>\n<meta name=\"description\" content=\"In the world of financial and strategic investing, few metrics are as universally revered as Return on Invested Capital (ROIC)\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/murrayslatter.me\/?p=5615\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Return on Invested Capital (ROIC) - Murray Slatter\" \/>\n<meta property=\"og:description\" content=\"In the world of financial and strategic investing, few metrics are as universally revered as Return on Invested Capital (ROIC)\" \/>\n<meta property=\"og:url\" content=\"https:\/\/murrayslatter.me\/?p=5615\" \/>\n<meta property=\"og:site_name\" content=\"Murray Slatter\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-16T11:27:06+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-06-16T12:50:46+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/ROIC.png\" \/>\n\t<meta property=\"og:image:width\" content=\"749\" \/>\n\t<meta property=\"og:image:height\" content=\"462\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Murray Slatter\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Murray Slatter\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/murrayslatter.me\\\/?p=5615#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/murrayslatter.me\\\/?p=5615\"},\"author\":{\"name\":\"Murray Slatter\",\"@id\":\"https:\\\/\\\/murrayslatter.me\\\/#\\\/schema\\\/person\\\/9774d7f727e6b917f43267614574f6d5\"},\"headline\":\"Return on Invested Capital (ROIC)\",\"datePublished\":\"2025-06-16T11:27:06+00:00\",\"dateModified\":\"2025-06-16T12:50:46+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/murrayslatter.me\\\/?p=5615\"},\"wordCount\":673,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/murrayslatter.me\\\/?p=5615#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/i0.wp.com\\\/murrayslatter.me\\\/wp-content\\\/uploads\\\/2025\\\/06\\\/ROIC.png?fit=749%2C462&ssl=1\",\"articleSection\":[\"Master Class\",\"Mental Models - Financial &amp; Investment\"],\"inLanguage\":\"en\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/murrayslatter.me\\\/?p=5615#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/murrayslatter.me\\\/?p=5615\",\"url\":\"https:\\\/\\\/murrayslatter.me\\\/?p=5615\",\"name\":\"Return on Invested Capital (ROIC) - Murray Slatter\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/murrayslatter.me\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/murrayslatter.me\\\/?p=5615#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/murrayslatter.me\\\/?p=5615#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/i0.wp.com\\\/murrayslatter.me\\\/wp-content\\\/uploads\\\/2025\\\/06\\\/ROIC.png?fit=749%2C462&ssl=1\",\"datePublished\":\"2025-06-16T11:27:06+00:00\",\"dateModified\":\"2025-06-16T12:50:46+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/murrayslatter.me\\\/#\\\/schema\\\/person\\\/9774d7f727e6b917f43267614574f6d5\"},\"description\":\"In the world of financial and strategic investing, few metrics are as universally revered as Return on Invested Capital (ROIC)\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/murrayslatter.me\\\/?p=5615#breadcrumb\"},\"inLanguage\":\"en\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/murrayslatter.me\\\/?p=5615\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en\",\"@id\":\"https:\\\/\\\/murrayslatter.me\\\/?p=5615#primaryimage\",\"url\":\"https:\\\/\\\/i0.wp.com\\\/murrayslatter.me\\\/wp-content\\\/uploads\\\/2025\\\/06\\\/ROIC.png?fit=749%2C462&ssl=1\",\"contentUrl\":\"https:\\\/\\\/i0.wp.com\\\/murrayslatter.me\\\/wp-content\\\/uploads\\\/2025\\\/06\\\/ROIC.png?fit=749%2C462&ssl=1\",\"width\":749,\"height\":462},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/murrayslatter.me\\\/?p=5615#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/murrayslatter.me\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Return on Invested Capital (ROIC)\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/murrayslatter.me\\\/#website\",\"url\":\"https:\\\/\\\/murrayslatter.me\\\/\",\"name\":\"Murray Slatter\",\"description\":\"Empowering Good teams to be Great!\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/murrayslatter.me\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/murrayslatter.me\\\/#\\\/schema\\\/person\\\/9774d7f727e6b917f43267614574f6d5\",\"name\":\"Murray Slatter\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/8aa0f1751d211918ccc2037a8b3ce22431cec7bef7edf9c993cee70e20717c88?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/8aa0f1751d211918ccc2037a8b3ce22431cec7bef7edf9c993cee70e20717c88?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/8aa0f1751d211918ccc2037a8b3ce22431cec7bef7edf9c993cee70e20717c88?s=96&d=mm&r=g\",\"caption\":\"Murray Slatter\"},\"url\":\"https:\\\/\\\/murrayslatter.me\\\/?author=2\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Return on Invested Capital (ROIC) - Murray Slatter","description":"In the world of financial and strategic investing, few metrics are as universally revered as Return on Invested Capital (ROIC)","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/murrayslatter.me\/?p=5615","og_locale":"en_US","og_type":"article","og_title":"Return on Invested Capital (ROIC) - Murray Slatter","og_description":"In the world of financial and strategic investing, few metrics are as universally revered as Return on Invested Capital (ROIC)","og_url":"https:\/\/murrayslatter.me\/?p=5615","og_site_name":"Murray Slatter","article_published_time":"2025-06-16T11:27:06+00:00","article_modified_time":"2025-06-16T12:50:46+00:00","og_image":[{"width":749,"height":462,"url":"https:\/\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/ROIC.png","type":"image\/png"}],"author":"Murray Slatter","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Murray Slatter","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/murrayslatter.me\/?p=5615#article","isPartOf":{"@id":"https:\/\/murrayslatter.me\/?p=5615"},"author":{"name":"Murray Slatter","@id":"https:\/\/murrayslatter.me\/#\/schema\/person\/9774d7f727e6b917f43267614574f6d5"},"headline":"Return on Invested Capital (ROIC)","datePublished":"2025-06-16T11:27:06+00:00","dateModified":"2025-06-16T12:50:46+00:00","mainEntityOfPage":{"@id":"https:\/\/murrayslatter.me\/?p=5615"},"wordCount":673,"commentCount":0,"image":{"@id":"https:\/\/murrayslatter.me\/?p=5615#primaryimage"},"thumbnailUrl":"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/ROIC.png?fit=749%2C462&ssl=1","articleSection":["Master Class","Mental Models - Financial &amp; Investment"],"inLanguage":"en","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/murrayslatter.me\/?p=5615#respond"]}]},{"@type":"WebPage","@id":"https:\/\/murrayslatter.me\/?p=5615","url":"https:\/\/murrayslatter.me\/?p=5615","name":"Return on Invested Capital (ROIC) - Murray Slatter","isPartOf":{"@id":"https:\/\/murrayslatter.me\/#website"},"primaryImageOfPage":{"@id":"https:\/\/murrayslatter.me\/?p=5615#primaryimage"},"image":{"@id":"https:\/\/murrayslatter.me\/?p=5615#primaryimage"},"thumbnailUrl":"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/ROIC.png?fit=749%2C462&ssl=1","datePublished":"2025-06-16T11:27:06+00:00","dateModified":"2025-06-16T12:50:46+00:00","author":{"@id":"https:\/\/murrayslatter.me\/#\/schema\/person\/9774d7f727e6b917f43267614574f6d5"},"description":"In the world of financial and strategic investing, few metrics are as universally revered as Return on Invested Capital (ROIC)","breadcrumb":{"@id":"https:\/\/murrayslatter.me\/?p=5615#breadcrumb"},"inLanguage":"en","potentialAction":[{"@type":"ReadAction","target":["https:\/\/murrayslatter.me\/?p=5615"]}]},{"@type":"ImageObject","inLanguage":"en","@id":"https:\/\/murrayslatter.me\/?p=5615#primaryimage","url":"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/ROIC.png?fit=749%2C462&ssl=1","contentUrl":"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/ROIC.png?fit=749%2C462&ssl=1","width":749,"height":462},{"@type":"BreadcrumbList","@id":"https:\/\/murrayslatter.me\/?p=5615#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/murrayslatter.me\/"},{"@type":"ListItem","position":2,"name":"Return on Invested Capital (ROIC)"}]},{"@type":"WebSite","@id":"https:\/\/murrayslatter.me\/#website","url":"https:\/\/murrayslatter.me\/","name":"Murray Slatter","description":"Empowering Good teams to be Great!","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/murrayslatter.me\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en"},{"@type":"Person","@id":"https:\/\/murrayslatter.me\/#\/schema\/person\/9774d7f727e6b917f43267614574f6d5","name":"Murray Slatter","image":{"@type":"ImageObject","inLanguage":"en","@id":"https:\/\/secure.gravatar.com\/avatar\/8aa0f1751d211918ccc2037a8b3ce22431cec7bef7edf9c993cee70e20717c88?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/8aa0f1751d211918ccc2037a8b3ce22431cec7bef7edf9c993cee70e20717c88?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/8aa0f1751d211918ccc2037a8b3ce22431cec7bef7edf9c993cee70e20717c88?s=96&d=mm&r=g","caption":"Murray Slatter"},"url":"https:\/\/murrayslatter.me\/?author=2"}]}},"jetpack_featured_media_url":"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/ROIC.png?fit=749%2C462&ssl=1","jetpack-related-posts":[{"id":3775,"url":"https:\/\/murrayslatter.me\/?p=3775","url_meta":{"origin":5615,"position":0},"title":"Return on Invested Capital (ROIC) as a Key Metric","author":"Murray Slatter","date":"August 11, 2024","format":false,"excerpt":"Why ROIC is My Primary Measure of Capital Allocation Success and How I Optimize It In the world of business and finance, metrics are essential tools for measuring success. Among these, Return on Invested Capital (ROIC) stands out as a critical indicator of how effectively a company is using its\u2026","rel":"","context":"In &quot;Investing&quot;","block_context":{"text":"Investing","link":"https:\/\/murrayslatter.me\/?cat=11"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2024\/08\/Slide5.jpg?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2024\/08\/Slide5.jpg?fit=1200%2C675&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2024\/08\/Slide5.jpg?fit=1200%2C675&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2024\/08\/Slide5.jpg?fit=1200%2C675&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2024\/08\/Slide5.jpg?fit=1200%2C675&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":5620,"url":"https:\/\/murrayslatter.me\/?p=5620","url_meta":{"origin":5615,"position":1},"title":"Capital Allocation","author":"Murray Slatter","date":"June 16, 2025","format":false,"excerpt":"The CEO\u2019s Most Important Job In the world of finance and investment, few principles are as crucial\u2014and as misunderstood\u2014as capital allocation. For investors, understanding how well a company allocates its capital can be the difference between backing a compounder versus a value trap. For executives, capital allocation is the job.\u2026","rel":"","context":"In &quot;Master Class&quot;","block_context":{"text":"Master Class","link":"https:\/\/murrayslatter.me\/?cat=17"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Capital-Allocation-2.png?fit=1020%2C574&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Capital-Allocation-2.png?fit=1020%2C574&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Capital-Allocation-2.png?fit=1020%2C574&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Capital-Allocation-2.png?fit=1020%2C574&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":3771,"url":"https:\/\/murrayslatter.me\/?p=3771","url_meta":{"origin":5615,"position":2},"title":"Mastering Capital Allocation for Strategic Success","author":"Murray Slatter","date":"August 11, 2024","format":false,"excerpt":"Introduction to the Series Capital allocation is the cornerstone of effective leadership and long-term business success. In a rapidly evolving business environment, the ability to allocate resources strategically can mean the difference between thriving and merely surviving. This series of articles delves into the key aspects of capital allocation, providing\u2026","rel":"","context":"In &quot;Master Class&quot;","block_context":{"text":"Master Class","link":"https:\/\/murrayslatter.me\/?cat=17"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2024\/08\/Slide1.jpg?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2024\/08\/Slide1.jpg?fit=1200%2C675&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2024\/08\/Slide1.jpg?fit=1200%2C675&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2024\/08\/Slide1.jpg?fit=1200%2C675&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2024\/08\/Slide1.jpg?fit=1200%2C675&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":2869,"url":"https:\/\/murrayslatter.me\/?p=2869","url_meta":{"origin":5615,"position":3},"title":"The Future of Investing: Embracing High Operational Leverage and Innovative Models","author":"Murray Slatter","date":"February 24, 2024","format":false,"excerpt":"The investment landscape is ripe for a paradigm shift, moving away from traditional models toward strategies that embrace high operational leverage and innovation. This final blog post in our series argues for a reevaluation of where new investment monies are directed, highlighting the advantages of investing in companies with the\u2026","rel":"","context":"In &quot;MissionX&quot;","block_context":{"text":"MissionX","link":"https:\/\/murrayslatter.me\/?cat=27"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2024\/02\/Slide19.jpg?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2024\/02\/Slide19.jpg?fit=1200%2C675&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2024\/02\/Slide19.jpg?fit=1200%2C675&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2024\/02\/Slide19.jpg?fit=1200%2C675&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2024\/02\/Slide19.jpg?fit=1200%2C675&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":2866,"url":"https:\/\/murrayslatter.me\/?p=2866","url_meta":{"origin":5615,"position":4},"title":"Navigating Beyond Traditional Paths: The Limitations of Conventional Investments","author":"Murray Slatter","date":"February 24, 2024","format":false,"excerpt":"In a world where the only constant is change, adhering strictly to traditional investment avenues such as real estate, bonds, and old-world equities may no longer suffice. This adherence stems from a belief that past success guarantees future returns, a notion we at Mission X challenge. The landscape of investment\u2026","rel":"","context":"In &quot;MissionX&quot;","block_context":{"text":"MissionX","link":"https:\/\/murrayslatter.me\/?cat=27"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2024\/02\/Slide17.jpg?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2024\/02\/Slide17.jpg?fit=1200%2C675&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2024\/02\/Slide17.jpg?fit=1200%2C675&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2024\/02\/Slide17.jpg?fit=1200%2C675&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2024\/02\/Slide17.jpg?fit=1200%2C675&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":5627,"url":"https:\/\/murrayslatter.me\/?p=5627","url_meta":{"origin":5615,"position":5},"title":"Cash Conversion Cycle","author":"Murray Slatter","date":"June 16, 2025","format":false,"excerpt":"Turning Time into Profit: Mastering the Cash Conversion Cycle In the fast-paced world of business and investing, liquidity and operational efficiency are often more critical than raw profitability. One of the most powerful metrics to evaluate a company\u2019s operational liquidity is the Cash Conversion Cycle (CCC) \u2014 a model that\u2026","rel":"","context":"In &quot;Master Class&quot;","block_context":{"text":"Master Class","link":"https:\/\/murrayslatter.me\/?cat=17"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Cash-Conversation-Cycle.png?fit=1200%2C740&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Cash-Conversation-Cycle.png?fit=1200%2C740&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Cash-Conversation-Cycle.png?fit=1200%2C740&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Cash-Conversation-Cycle.png?fit=1200%2C740&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/murrayslatter.me\/wp-content\/uploads\/2025\/06\/Cash-Conversation-Cycle.png?fit=1200%2C740&ssl=1&resize=1050%2C600 3x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/murrayslatter.me\/index.php?rest_route=\/wp\/v2\/posts\/5615","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/murrayslatter.me\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/murrayslatter.me\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/murrayslatter.me\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/murrayslatter.me\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5615"}],"version-history":[{"count":1,"href":"https:\/\/murrayslatter.me\/index.php?rest_route=\/wp\/v2\/posts\/5615\/revisions"}],"predecessor-version":[{"id":5648,"href":"https:\/\/murrayslatter.me\/index.php?rest_route=\/wp\/v2\/posts\/5615\/revisions\/5648"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/murrayslatter.me\/index.php?rest_route=\/wp\/v2\/media\/5647"}],"wp:attachment":[{"href":"https:\/\/murrayslatter.me\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5615"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/murrayslatter.me\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5615"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/murrayslatter.me\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5615"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}