Transcript ROI Trees - Georgetown University

ROI Trees
Ken Homa
Return on Investment
Revenue
Profits
Costs
ROI
Plant &
Equipment
Investment
Capacity
Working
Capital
Inventory
Receivables
Payables
Return on Investment
Price
Revenue
Volume
Profit
Variable
Cost
Var.Cost
Per Unit
Cost
ROI
Fixed
Cost
Investment
© 2000 K.E.Homa
DuPont Model
R
e
v
e
n
u
e
R.O.S.
Profits
Costs
R.O.A.
S
a
l
e
s
R.O.I.
Inventory
Asset
Turns
Assets
Plant & Equip
Equity
Finl.
Lever.
Forecast
Manufacturing Financial Framework
.
Demand
Shipments
Inventory
Available
Product
Revenue
Production
Output
Price
Profit
Variable
Cost
Var.Cost
Per Unit
Cost
ROI
Fixed
Cost
Investment
Capacity
Marketing / Financial Framework
CAPACITY
INVESTMENT
MARKET
POTENTIAL
MARKET
SIZE
R.O.I.
SALES
MARKET
PENETRATION
MARKET
PRODUCTS
+
SUPPORT
BUSINESS / PROD.
PORTFOLIO
SHARE
PROFITS
PRICE
PROFIT
M/P
I/G
H/D
D/W
MARGIN
COST