Energy State
ES
Energy State (ES) measures whether a structural system is growing through internal nourishment or being sustained through external capital extraction.
Mathematical Nature
Dimensionless multiplier. A nourishing reading is >1.0; an extractive reading is <1.0. Strictly bounded above zero — the composite formula is multiplicative, so ES cannot be zero or negative under any calculation path.
Primary Proxy (DRG-A/B)
ROIC is a level, not a period-over-period ratio of changes — this is the structural fix relative to the formula's prior version, which compared year-over-year marketing spend to profit growth and broke down whenever profit growth crossed zero.
Notation Discipline
The master formula's denominator always uses ES−1. “ES” is never written bare in a denominator position, in any BCI document. This is a protocol-wide rule with no exceptions.
Reassessment Trigger
A major reputational crisis with observable demand impact, or a structural supply-chain disruption, immediately forces a re-basing of an asset's ES reading. Pending that reassessment, ES defaults to below 1.0 — the pre-event reading is not carried forward.