article thumbnail

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


Return on Capital (ROC): Efficiency Meets Profitability Return on Capital evaluates a company's proficiency in generating profits from the capital invested in its operations. 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

a year from admissions, tests, treatments, prescriptions, and procedures resulting in a profitable return on investment from acquiring these practices [6]. Hospital-employed physicians in specialties like cardiovascular surgery and orthopedics can generate upwards of $3.3M