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High Expectations: Managing For Value In The Automotive Industry

Chief Executive

Since shareholder value is driven by investor expectations of future cash flow and EP growth (See S&P 500 Warranted Value of Discounted Economic Profits vs. Actual Traded Value chart, below), EP has been used as the profitability metric for AlixPartners’ Automotive Value Creation study.

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How U.S. Hospitals and Health Systems Can Reverse Their Sliding Financial Performance

Harvard Business Review

Since the beginning of 2016, the financial performance of hospitals and health systems in the United States has significantly worsened. MD Anderson Cancer Center lost $266 million on operations in FY 2016 and another $170 million in the first months of FY 2017. All these problems contribute to diminished cash flows.

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How Companies Can Use Investors to Their Advantage

Harvard Business Review

By 2016, the rise of smart phones seemed to have made the company less relevant: Its revenues were at almost the same level they had been a full decade earlier. Nikon, the legendary Japanese camera maker, provides a textbook study in how smart managers can work with strategic investors to transform a struggling business.

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What GE’s Board Could Have Done Differently

Harvard Business Review

Since Immelt’s departure, GE’s stock is down another 30%, as its new CEO, John Flannery, has struggled to cope with the cash flow drain from years of problematic acquisitions, divestitures, and buybacks. Because of these dubious decisions, GE’s ratio of debt to earnings has soared from 1.5 in 2013 to 3.7

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The End-of-Quarter Sales Rush Costs Companies Money

Harvard Business Review

companies over nine consecutive quarters (Q1 2014 through Q1 2016). The decrease in deal size and win rate results in an estimated $98 million per year in lost revenue for the average company in our data set. Conversely, it represents a potential gain of over 27% in revenue per company if properly addressed.

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McDonald’s Has to Do More than Manipulate Its Stock Price

Harvard Business Review

A central plank of the plan is to “return $8 [billion] to $9 billion to shareholders in 2015 and to reach the top end of its three-year target of returning $18 billion to $20 billion to them by the end of 2016.” ” In 2014, McDonald’s expended $3.2 ’ ” The losers.

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Subscription Businesses Are Booming. Here’s How to Value Them

Harvard Business Review

For example, they may create revenue forecasts that use inputs such as macroeconomic trends for key demographic segments. Their revenues grew by over 100% in 2016. Revenues were indeed growing rapidly, but only because Blue Apron’s marketing spend was growing even more rapidly. that aggregate sales in the U.S.