Harvard Business Review

FEBRUARY 26, 2018

Similarly, Microsoft paid $26 billion for loss-making LinkedIn in 2016, and Facebook paid $19 billion for WhatsApp in 2014 when it had no revenues or profits. This becomes clear when you look at a company’s two most important financial statements: the balance sheet and the income statement.

Balance Sheet 8

Balance Sheet Assets Revenue Accounts 8

Harvard Business Review

MARCH 14, 2017

First, blockchain could help relieve a large balance-sheet liability that many in the industry are facing. Loyalty programs have long relied on cobranded cards and partnerships to sell points and generate incremental revenue. Early adopters could benefit considerably.

Travel 15

Travel Balance Sheet Banking Revenue 15

Harvard Business Review

JULY 12, 2017

It breeds indifference, which in turn breeds a yawning gap between underwriters, whose balance sheets absorb risk (the risk takers), and customers, whose enterprises create risks (the risk makers). In 2015 these top three players generated 48% of the revenues among the top 50 brokers in the U.S.

Insurance 15

Insurance Balance Sheet Assets Revenue 15

Harvard Business Review

SEPTEMBER 14, 2015

The current ratio measures a firm’s ability to pay off its short-term liabilities with its current assets. So your current assets are things that you could convert into cash within the year. These include accounts payable, accrued vacation, deferred revenue, inventories, and receivables. ” How do you calculate it?

Accounts Payable 15

Accounts Payable Assets Balance Sheet Accounts 15

Harvard Business Review

AUGUST 24, 2012

Since customers don't complain about that, you've lost the opportunity to collect revenue you're due. While in everyday language, it is plain enough that poor-quality data are liabilities and high-quality data are assets, they don't appear on the balance sheet.

Balance Sheet 15

Balance Sheet Operations Assets Revenue 15

Harvard Business Review

OCTOBER 11, 2018

Indeed, The Economist proclaimed that data are now “the world’s most valuable asset.” Paradoxically, “data” appear everywhere but on the balance sheet and income statement. ” Some even refer to data as “exhaust” — the antithesis of a valued asset! Start with talent.

Balance Sheet 14

Balance Sheet Assets Scaling Engineering 14

Harvard Business Review

JUNE 27, 2017

Third-party ownership models, which separate the ownership of an asset from the service it provides, have transformed other industries for the better. We believe that a recent business-model innovation will overcome this barrier and upend commercial lighting and other energy services. number of copies each month). How It Works.

Balance Sheet 13

Balance Sheet Energy Operations Assets 13

Harvard Business Review

JANUARY 9, 2015

The US economy is in cyclical full-steam-ahead mode, but it’s mainly benefitting the owners of financial assets – wage growth is missing. Interest rates of zero meant that central banks took to targeting asset prices – stocks and bonds – to boost spending. We need new policies. This policy is also fairer.

Banking 12

Banking Assets Government Balance Sheet 12

Harvard Business Review

OCTOBER 31, 2017

That strengthened investment banks’ balance sheets by forcing them to scale back and to change the nature of the risks they take. As a result, their balance sheets are half as large on a risk-adjusted basis, and the capital they hold against trading positions has doubled over the past decade, our research shows.

Banking 8

Banking Balance Sheet Assets Compliance 8

Harvard Business Review

NOVEMBER 7, 2013

But by then its one-time core assets — retail stores — had become expensive liabilities, weighing down the company’s effort to compete in the winner-take-all kind of market that is often characteristic of Big Bang innovation. Revenue and profits continued to decline. In 2010, the once-unbeatable company declared bankruptcy.

Balance Sheet 10

Balance Sheet Assets Digital Transformation Operations 10

Harvard Business Review

OCTOBER 20, 2014

A key challenge in quantifying the value of IoT is in valuing the data assets it creates. In many companies, these types of data assets are currently assigned rough valuations and classified as “intangible” or “goodwill” on the balance sheet.

Balance Sheet 8

Balance Sheet Cash Flow Assets Operations 8

Harvard Business Review

SEPTEMBER 25, 2014

Turning information exchange into value and revenue involves changing the nature of information relationships as well as management’s abilities to act on that information. Financially, organizations require new models to account for information assets beyond treating them as intangibles.

Balance Sheet 10

Balance Sheet Assets Diversity Operations 10

Harvard Business Review

APRIL 10, 2013

Scale-up means growth, and growth means jobs, wealth, and tax revenues. In a recent post on HBR.org , I called attention to the fact that we entrepreneurship promoters are too focused on start-up, and need to re-balance the dialog to support scale-up as well. Even better. Governments and shareholders should have different motivations.

Balance Sheet 10

Balance Sheet Government Scaling Cash Flow 10

Harvard Business Review

SEPTEMBER 25, 2017

For instance, before the crisis, the three largest German banks had two-thirds of their total assets in foreign markets; today it is only one-third. According to Dealogic, banks have divested more than $2 trillion in assets since 2007. Their share of total foreign investment assets has risen from 8% to 14% over the past ten years.

Banking 8

Banking Assets Balance Sheet Marketing 8

Harvard Business Review

NOVEMBER 6, 2013

Failure to present a groundbreaking new vision risks leaving in place old economic drivers, especially the over-reliance on fixed-asset investment, that have created serious challenges such as China’s “ghost cities” and high levels of local government debt. The central government must start to give more tax revenues to local governments.

Balance Sheet 8

Balance Sheet Government Revenue Sales 8

Harvard Business Review

SEPTEMBER 25, 2014

Turning information exchange into value and revenue involves changing the nature of information relationships as well as management’s abilities to act on that information. Financially, organizations require new models to account for information assets beyond treating them as intangibles.

Balance Sheet 8

Balance Sheet Assets Diversity Operations 8

Harvard Business Review

OCTOBER 30, 2017

With refrains of “unlock hidden value” and “increase shareholder value,” and powered by over $120 billion in assets , activist investors like Trian look for companies like GE (or Procter & Gamble) whose share price is underperforming relative to its peers (or that have large amounts of cash on their balance sheets).

Balance Sheet 8

Balance Sheet Revenue Assets Digital Transformation 8

Chief Executive

JULY 25, 2022

We went back and ran an analysis on the cash-to-assets ratio of companies that did really well in these kinds of environments, even when they were small. We found that the discipline to have a very high cash-to-assets ratio showed up early in their history. And if we do that, we can’t help but grow revenues per fixed cost.

Balance Sheet 98

Balance Sheet Assets Engineering Operations 98

Harvard Business Review

MARCH 2, 2016

The strategy works, temporarily putting more cash on the positive side of the balance sheet. But it only makes the ROA problem worse: companies end up burdened with more unspent cash and a bigger block of dead, unproductive assets. Ironically but irrefutably, this is not good for business.

Assets 8

Assets Balance Sheet Operations A/B Testing 8

Chief Executive

SEPTEMBER 30, 2022

Fueled by near-zero interest rates and federal stimulus money, public companies amassed a war chest of cheap capital to chase risky assets, strategies and yield. Despite stiff economic headwinds, robust M&A opportunities are there for the taking, with many companies enjoying steady cash flows and strong balance sheets. “In

Balance Sheet 52

Balance Sheet Cash Flow Software Marketing 52

Chris LoCutro

NOVEMBER 12, 2024

Acquisitions: Physical and Human Resources (00:31:00) Why understanding your business needs versus wants is crucial when evaluating new hires or assets. In this section, we discuss the decision-making process behind acquiring new assets or hiring key personnel. You know, here's brand new sales, here's monthly recurring revenue.

Assets 59

Assets Revenue Cash Flow Balance Sheet 59