prof - 15.6% 15.4% 15.0% AVERAGE INDUSTRY ROIC IN THE US...

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PROFITABILITY OF SELECTED US INDUSTRIES - AVERAGE ROIC, 1992 - 2006 ROIC IS THE APPROPRIATE MEASURE OF PROFITABILITY FOR STRATEGY FORMULATION, NOT TO MENTION EQUITY INVESTORS. WE UTILIZE EARNINGS BEFORE INTEREST AND TAXES DIVIDED BY AVERAGE INVESTED CAPITAL LESS EXCESS CASH AS A MEASURE OF ROIC. THIS MEASURE CONTROLS FOR IDIOSYNCRATIC DIFFERENCE IN CAPITAL STRUCTURE AND TAX RATES ACROSS COMPANIES AND INDUSTRIES. SECURITY BROKERS AND DEALERS SOFT DRINKS PREPACKAGED SOFTWARE PHARMACEUTICALS COSMETICS ADVERTISING AGENCIES DISTILLED SPIRITS SEMICONDUCTORS MEDICAL INSTRUMENTS MEN'S AND BOY'S CLOTHING TIRES HOUSEHOLD APPLIANCES MALT BEVERAGES CHILO DAY CARE SERVICES HOUSEHOLD FURNITURE DRUG STORES GROCERY STORES IRON STEEL COOKIES AND CRACKERS MOBILE HOMES 40.9% 37.6% 37.6% 31.7% 28.6% 27.3% 26.4% 21.3% 21.0% 19.5% 19.5% 19.2% 19.0% 17.6% 17.0% 16.5% 16.0%
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Unformatted text preview: 15.6% 15.4% 15.0% AVERAGE INDUSTRY ROIC IN THE US 14.9% WINE AND BRANDY BAKERY PRODUCTS ENGINES AND TURBINES BOOK PUBLISHING LABORATORY EQUIPMENT OIL AND GAS MACHINERY SOFT DRINK BOTTLING KNITTING MILLS HOTELS CATALOG, MAIL-ORDER HOUSES AIRLINES 13.9% 13.8% 13.7% 13.4% 13.4% 12.6% 11.7% 10.5% 10.4% 5.9% 5.9% I MOST PROFITABLE COMPANIES (2007): PROFITS EXXON GE CHEVRON JPMORGAN BANK OF AMERICA MICROSOFT BERKSHIRE WMT AT&T CONOCO $40,610 $22,208 $18,688 $15,365 $14,982 $14,065 $13,213 $12,731 $11,951 $11,891 MARKET VALUE EXXON GE MICROSOFT AT&T P&G WMT BERKSHIRE J&J CHEVRON BANK OF AMERICA $455,929 $365,582 $259,757 $277,305 $213,701 $208,730 $206,976 $181,615 $175,479 $169,115...
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This note was uploaded on 03/06/2011 for the course HFT 3203 taught by Professor Darby during the Spring '11 term at FIU.

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prof - 15.6% 15.4% 15.0% AVERAGE INDUSTRY ROIC IN THE US...

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