What does disclosure primarily inform about a company's capabilities?

Disclosure primarily informs stakeholders about a company's growth potential through capital efficiency. When a company discloses information related to its operations, financial performance, and sustainability practices, it often highlights how effectively it utilizes its capital to generate growth.

This transparency allows investors and analysts to assess the company's ability to reinvest earnings, manage costs, and effectively allocate resources, which are critical factors contributing to its ability to expand in the market. By demonstrating strong capital efficiency, a company signals to stakeholders that it has a sound strategy for sustainable growth, which can enhance investor confidence and attract additional funding.

In contrast, while maximizing employee productivity, reducing operational risk exposure, and implementing competitive pricing strategies are important aspects of a business's overall performance, they do not directly showcase the fundamental link between capital use and growth potential as effectively as capital efficiency does. Disclosure related to capital efficiency directly aligns with investors' interests in understanding the company's future trajectory and sustainability in the marketplace.