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Revenue growth is a critical factor in evaluating a company's long-term potential for success. Companies that can consistently increase their revenue over time are often better positioned to invest in research and development, expand their operations, and generate higher profits, which can translate into greater shareholder value. In this blog post, we'll explore why revenue growth is such an important metric for investors and how it can be used to identify high-quality investment opportunities. We'll also provide some tips and strategies for finding companies with 5-year revenue growth above 7%, a threshold that is often used by growth investors and other financial analysts. Whether you're a seasoned investor or just getting started, understanding the importance of revenue growth can help you make more informed investment decisions and build a stronger portfolio over time. So if you're interested in learning more about this key metric and how to find great investme...

ROIC (Return on Invested Capital) is a key financial metric that measures how effectively a company uses its capital to generate returns. An ROIC of greater than 15% indicates that a company is generating strong returns on its invested capital, which is a good sign for investors. To better understand ROIC, let's break down the formula: ROIC = Net Operating Profit After Tax (NOPAT) / Invested Capital Net Operating Profit After Tax (NOPAT) is a company's operating profit after taxes. It measures how much profit a company is generating from its core operations. Invested capital is the total amount of capital invested in the company, including both debt and equity. It represents the amount of capital that a company has available to invest in its operations and generate profits. By dividing NOPAT by invested capital, ROIC gives an indication of how efficiently a company is using its invested capital to generate profits. An ROIC of 15% or higher indicates that the company is generati...

W hen it comes to finding great performing stocks, there are several key metrics and criteria to consider. In this post you can learn about some top metrics like ROIC, Profit margi, and sales growth etc. Here is a more detailed explanation of each of the criteria: ROIC > 15%:  ROIC stands for return on invested capital, which is a measure of how efficiently a company is using its capital to generate profits. A ROIC of 15% or higher suggests that a company is generating strong returns on the capital it has invested, which is a good sign for long-term investors. Profit margin > 10%:   Profit margin is a measure of how much profit a company is making relative to its revenue. A profit margin of 10% or higher indicates that a company is earning a healthy amount of profit on its sales, which is another positive sign for investors. Revenue growth past 5 years > 7%:   Revenue growth is a key driver of a company's long-term success. A growth rate of 7% or higher over the ...