What is your return on capital?

Are you earning more than your cost of capital? It's a question my friend Jim Hyder has asked countless printing executives. I know Jim from my NAPL (Paramus, NJ) days when, as president of Fetter Printing Co. (Louisville, KY), he rose through the association's leadership to become chairman in 2001. Jim spent the early part of his career as president of Washburn Graphics, working under Cadmus founders Don Davidson and Wally Stettinius. That alone qualifies him as “accomplished” in matters relating to financial management. Here's his pitch for capital management. Blended capital Capital in a business comprises two ...

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