Assets, Cash Flow and Fixed Costs

We Can’t Study Short-Termism Without the Right Metrics

Harvard Business Review

APRIL 5, 2017

Similarly, considering greater accruals (which represent the difference between reported income and operating cash flows) to measure short-term orientation has its difficulties. It assumes that a smaller proportion of cash flows in earnings indicates a myopic firm.

Metrics

Metrics Cash Flow Revenue Compensation

The Challenges GM Is Facing, and the Reasoning Behind Its Plant Closures

Harvard Business Review

NOVEMBER 30, 2018

Capital-intensive factories have a high-fixed-cost, low-variable-cost operating model. If you greatly reduce the production volume, the cars that do come out have to absorb more of the fixed costs, and that eventually sends the product into a profitability death spiral. Given the shift in immediate U.S.

Fixed Costs

Fixed Costs Assets Cash Flow Variable Costs

OrgDev Digest

We Can’t Study Short-Termism Without the Right Metrics

The Challenges GM Is Facing, and the Reasoning Behind Its Plant Closures

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