Gartner Research

How Successful Companies Allocate Their Cash

Summary

A rising stock market has obscured the fact that over 70% of companies routinely fail to create economic value. Learn the specific ways CFOs of top-performing companies deploy cash to drive high returns on invested capital and add the most economic value while delivering strong shareholder returns.

Published: 02 September 2021

ID: G00754382

Analyst(s): Finance Research Team

Table Of Contents

Overview

Data Insights

Gartner Recommended Reading

Note 1: Sticky Allocations

Note 2: Individual Impact of EVA’s Components

Note 3: TSR to EVA Correlation

Note 4: Capital Investment’s Relationship to Value Creation

Note 5: M&A Value and Volume

Note 6: The Immediate Effects of Stock Buybacks

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