Profit/ROCE Tree

What is it?

 

Breaking down the return of a business arithmetically to show the relationship of all the Key Performance Indicators

 

When is it useful?

  • To understand the economics of a new industry
  • To understand the performance drivers in company analysis
  • To diagnose issues over time
  • To compare different business models

An Example?


How do you do the analysis?

I want to know more

How can you adapt this concept?