Revenue growth can be attractive and still fail to create economic value if the capital required earns less than its cost.
Consider incremental contribution, capital intensity, cash conversion, execution risk and the return on invested capital relative to the weighted average cost of capital.
Business cases should make assumptions transparent and compare alternatives under base, downside and upside scenarios.
Which opportunities create sustainable returns after accounting for the capital and risk required?
Explore Strategic Finance & CFO Advisory ↗