Golden Triangle: Growth = ROC * RR | Learnings in Investment banking course, Financial modelling
Wizenius
MAY 19, 2023
The Golden Triangle: Growth = ROC * RR Ashwath Damodaran's Golden Triangle encapsulates the fundamental relationship between growth, return on capital (ROC), and the retention ratio (RR). This formula underscores the critical connection between a company's ability to generate profitable returns on capital and its reinvestment efforts.
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