Los 44.c Flashcards
(5 cards)
1
Q
How do you calculate industry growth rate
A
Annual rate each year
2
Q
What are the difference between growth and mature industries?
A
Growth industries = product markets that have considerable growth potential
Mature Industries = little or no growth potential remaining in their markets - growth rates are in line with the general economy or declining
3
Q
How does the TRBC differ from the GICS and ICB
A
TRBC includes governmental organisations
4
Q
How can you measure Industry Profitability?
A
Return on Invested capital (ROIC) - seen over time
However it is impractical to estimate ROIC for private companies, so analysts can use the return of publically traded companies and assume it’s similar for private companies.
5
Q
A
