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As a division head, your CEO has asked you to target Vops to be more than $2,500 and ROIC to be greater than 11%. What
As a division head, your CEO has asked you to target Vops to be more than $2,500 and ROIC to be greater than 11%.
What combination of Sales Growth, OP, and CR would you choose to achieve your objectives?
Provide an active Excel worksheet as a calculator.
Impact of Simultaneous Improvements in Sales Growth, OP, and CR (T5) The ROIC is much higher due to the improvements in operations. With a higher ROIC, growth adds substantial value. 90,1 91,2 92,3 93,4 9L OP CR ROIC No Change Improve All 10% 11% 8% 9% 5% 6% 5% 6% 5% 6% 4.5% 5.5% 56.0% 51.0% 8.0% 10.8% $958 $2,008 9.00% 9.00% Vopo WACC Impact of Simultaneous Improvements in Sales Growth, OP, and CR (T5) The ROIC is much higher due to the improvements in operations. With a higher ROIC, growth adds substantial value. 90,1 91,2 92,3 93,4 9L OP CR ROIC No Change Improve All 10% 11% 8% 9% 5% 6% 5% 6% 5% 6% 4.5% 5.5% 56.0% 51.0% 8.0% 10.8% $958 $2,008 9.00% 9.00% Vopo WACC
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