Credit Suisse examines how companies outside the U.S. allocate capital and why management decisions often matter more than growth itself. The paper argues that rapid asset growth frequently precedes weaker shareholder returns, while disciplined capital allocation and even business shrinkage can create greater long term value.
Capital Allocation Outside the U.S.
Credit Suisse
Michael Mauboussin, Dan Callahan
Research
83 Pages
Key Takeaways
ROIC Drives Funding: Countries with stronger returns fund more internally; U.S. CFROI averaged 8.5% versus 3.0% in Japan, reducing reliance on external capital.
Growth Can Destroy Value: Across 40 countries, low asset growth firms generally outperformed high asset growth firms, with the effect appearing in 14 of 17 European markets.
Buybacks Remain Regional: Average gross buybacks equaled 2.1% of sales in the U.S. but only 0.2% in Japan and 0.4% in APEJ.
Join our newsletter to have all of this content + Exclusive Newsletter Bonus Content delivered to your inbox every week
Related Content
Portfolio Management
Jul 2026
