Capital is used effectively can be a great business growth driver. Here are some of the most effective ways for measuring capital allocation as well as some ideas for capital application.
Return on equity: Acronym ROE this is best known as the return of shareholder equity as a positive form of asset acquisition.
Return On Investment: ROI is the positive return of investment capital put into asset acquisition
Free Cash Flow: FCF is cash flow from operations after taxes and expenses
How can free cash flow be used?
Marketing: This can be as simple as strategic growth or additional branding
Asset Acquisition: Distressed assets can be a great growth driver in the strategic acquisition of capital
How are you allocating your cash flow? Has your business gone free cash flow positive?
Let me know in the comments below.