Remove Capital Remove Profitable Return Remove Valuation
article thumbnail

Golden Triangle: Growth = ROC * RR | Learnings in Investment banking course, Financial modelling

Wizenius

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.

article thumbnail

Physician Practice Acquisitions: A Primer on Hospital & Private Equity Consolidation

InvestmentBank.com

With larger physician networks and access to specialist’s hospitals also gain negotiating leverage with insurers and can participate in alternative payment models, such as capitated and bundled payments, through vertical integration. Christopher Majdi, Director of Valuation & FMV Services at Premier, Inc. 2018, December 11).