In this chapter, we take the equity return, longform computation and then distill it into a six variable-formula. Using this formula, you can determine the OPM mix, operating margin, or sales to investment relationship you need to achieve targeted rates of return. The six V-Formula variables embody the three types of efficiencies that a business leader has at their fingertips: Operating Efficiency, Asset Efficiency, and, finally, Capital Efficiency. Tune in to learn how to measure your business profitability!
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