Introduction
My two immediately preceding columns have been dedicated to exploring, for reader’s benefit the thesis advanced by Envision Research, which argues that, ExxonMobil, an iconic Global 500 corporation, can successfully turnaround its fortunes away from its heavy indebtedness and ongoing zombification – if it could arrive at a financial position where it is able to generate sufficient revenues to be able to invest in its own self-driven or organic growth. As has been revealed in previous columns, that circumstance is established through determining whether ExxonMobil’s rate of return on capital employed, ROCE, and the company’s reinvestment rate, RR. Therefore:
Long-term Growth Rate = ROCE* RR
