Beyond Operating Assets: Redefining ROIC for Tech Investors
Summary
* This project builds a capital‑allocator ROIC that judges how software CEOs deploy every dollar of capital, departing sharply from the traditional “operating‑asset” metric.
* We expand invested capital to include goodwill, unrecognised SBC, cash + investments, purchase commitments, and non‑current deferred revenue, items that better reflect how software firms fund M&A and talent.
* Current NWC still nets against IC, but long‑term customer prepayments, ROU assets (minus lease liabili