Measuring Drivers of Capital Efficiency and Value Creation

DATE PUBLISHED: MAY 3, 2021

For many companies, the difference between strong and average performance can be traced to capital efficiency. This paper examines two key sectors that are known to be capital intensive and cyclical: chemicals and semiconductors. We then zoom in to a specific chemical company’s capital investment scorecard to investigate changes in relative and absolute performance and identify its strengths and weaknesses that contribute to relative share price performance.

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