Shareholder Forum: Returns on Corporate Capital ("ROCC")

Forum Home Page [see Broadridge note below

The Shareholder Forum

Returns on Corporate Capital™

—- comparisons of company returns based on GAAP-defined performance measurements —-

produced according to defined methodology and specifications with data provided by

EDGAR Online, a division of Donnelley Financial Solutions,

from SEC records of each subject company’s audited statements

inviting comments

The graphing tool below was developed in 2017 for use by any investor or corporate manager seeking a preliminary analysis of a company's use of its capital. Comments on the graph's use will be welcomed, and can be addressed to rocc@shareholderforum.com.

For additional information about the development of an "ROCC" metric, see the "ROCC Research Reference" page of the project's website.

Returns on Corporate Capital

The definition of Returns on Corporate Capital ("ROCC") was developed in a workshop project of the Shareholder Forum initiated in 2016 to provide a consistently defined "ROIC" measure for comparing corporate performance.

As indicated in the workshop's concluding October 20, 2017 report, a wide range of professional and academic participants contributed their expertise to assure consideration of all relevant corporate and investor decision-making interests in both the definition of ROCC analysis and the design of a graphing tool for its use. The project benefited particularly from the initial research contributions of Organizational Capital Partners and Shareholder Value Advisors, and from the data management and integrity assurance of EDGAR Online.

For listings of reports and research concerning the use of ROCC, see the Forum's "ROCC Research Reference" page.

NOTE: The graphing tool below is provided for illustration purposes only. The tool remains functional for analyses based on corporate SEC reports of fiscal years through 2017, but the database has not been updated since the 2018 completion of the Forum program.

For examples of ROCC applications to analyze investor decisions, see

Dow Jones MarketWatch

October 23, 2017

"Apple and Nike show that

stock performance is linked

to how CEOs invest money

• A measure called

return on corporate capital

is revealing — and there’s a free

investor tool for research"

see also

subsequent MarketWatch articles

about screening investment candidates

based on ROCC analyses:

June 26, 2023

♦♦♦
New York Times | Fair Game

June 17, 2016

"How to Gauge a C.E.O.’s Value?

Hint: It’s Not the Share Price"

♦♦♦

For ROCC applications specifically to analyses of stock buyback proposals, see the Forum's Buyback Analysis workshop and the following report:

New York Times | Fair Game
August 12, 2016
"A Simple Test to Dispel the Illusion
Behind Stock Buybacks"

Permission is granted to republish images of the graphs of Returns on Corporate Capital™ as presented on this website with their full statements of source and copyright information, or as otherwise specifically approved to satisfactorily describe the analysis and sources, and to respect the intellectual property rights of both the Shareholder Forum and its cited contributors of research.

Information requests and suggestions of research applications for Returns on Corporate Capital or variations of the analysis can be addressed to the Shareholder Forum at rocc@shareholderforum.com.

The information provided to Forum participants is intended for their private reference, and permission has not been granted for the republishing of any copyrighted material other than as specifically stated. The material presented on this web site is the responsibility of Gary Lutin, as chairman of the Shareholder Forum.

Shareholder Forum™ is a trademark owned by The Shareholder Forum, Inc., for the programs conducted since 1999 to support investor access to decision-making information. It should be noted that we have no responsibility for the services that Broadridge Financial Solutions, Inc., introduced for review in the Forum's 2010 "E-Meetings" program and has since been offering with the “Shareholder Forum” name, and we have asked Broadridge to use a different name that does not suggest our support or endorsement.