Our Philosophy

At Exodus our work centers around maximizing efficiency of working capital. Working capital is an investment every business makes in acquiring and retaining customers. Like any investment, working capital has opportunity cost - as the same capital could have been deployed elsewhere to earn a return (as dividends, interest rate, etc.). Therefore, each investor and manager should be asking themselves a question: “Is working capital invested in the company generating the highest possible return?”

In order to answer that question, one needs to measure current return on working capital (ROWC), and define what can be done to improve return in the future. Our insight is that often managers and investors do not have the right information at their disposal in order to evaluate working capital returns. Standard financial statements (Income Statement, Balance Sheet, Cash Flow) do not calculate either return on working capital, or yields per each activity. Absence of yield data doesn’t allow managers to judge whether working capital is being allocated to activities with highest yields, and if reallocation of working capital is in order.  

Exodus specializes in determining return on working capital (ROWC), recommending working capital reallocations towards activities with higher yields, and uncovering potential EBITDA improvements, which without yield analysis are often overlooked.

Almost like a mutual fund manager rebalances a stock portfolio based on yields to maximize portfolio value, Exodus helps its clients to reallocate working capital to operating activities with higher yields to maximize enterprise value.

At Exodus we believe that every business shall be run with “an exit in mind”. Whether the plan is to sell in ten months or ten years from now, we have observed that “exit mindset" creates a heightened awareness about the impact decisions have on company value. Working capital allocation decisions and resulting efficiency affect EBITDA, and, therefore, company value.