What measures can the Consumer cyclicals sector take to recover its ROIC post-pandemic?

The Consumer cyclicals sector can take several measures to recover its ROIC post-pandemic. These include focusing on cost reduction, improving operational efficiency, and investing in digital transformation to meet changing consumer behaviors. Additionally, companies in this sector can diversify their product offerings and explore new markets to increase their revenue streams. It's also important for these companies to manage their capital expenditures wisely to improve their return on invested capital.

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ROIC & Investment Valuation

Need help with which companies or projects to invest in? As a key driver of value in business, ROIC measures how well the company deploys its capital....

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The ROIC for the Basic materials sector has been in a long-term decline since 2011 and fell 54 basis points since the end of 2019. The ROIC for the Consumer cyclicals sector was hit hard by the COVID-19 pandemic and has fallen to its lowest level since mid-2011. The ROIC for the Energy sector was hit hardest of all sectors during the COVID-19 pandemic that coincided with increased production from Saudi Arabia and Russia. The ROIC for the Financials sector declined 82 basis points since the end of 2019 but remains well above the lows of the Financial Crisis. The ROIC for the Healthcare sector declined just 14 basis points since the end of 2019 and have remained relatively stable since the end of 2016. The ROIC for the Industrials sector was the second hardest-hit this year and fell 217 basis points since the end of 2019 as the sector bore much of the brunt of the global shutdowns. The ROIC for the Utilities sector declined 27 basis points since the end of 2019 and is once again below...

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The ROIC for the Financials sector declined 82 basis points since the end of 2019 but remains well above the lows of the Financial Crisis. It seems to have fared better than the Basic materials, Consumer cyclicals, and Energy sectors, which have seen more significant declines. However, it has not performed as well as the Healthcare sector, which only declined 14 basis points since the end of 2019.

The ROIC for the Energy sector was hit hardest of all sectors during the COVID-19 pandemic that coincided with increased production from Saudi Arabia and Russia. It has suffered more compared to other sectors like Financials, Healthcare, and Utilities which have seen lesser declines.

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