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 11

Metrics Cash Flow Revenue Compensation 11

Harvard Business Review

JULY 25, 2012

Turning around GE or Yahoo may be prestigious and lucrative; at a minimum, big companies have the cash flow to ride out a turnaround. Why, then, destroy one asset to "improve" another? Doing so may be gratifying but it is irrelevant because young, failing companies can't recruit external executive talent.

Cash Flow 15

Cash Flow Assets Metrics Recruitment 15

Harvard Business Review

JANUARY 11, 2016

The world is not short on capital — a startling $43 trillion of assets is currently under management in the United States alone. The main challenge is that investors are very good at understanding a single asset with standalone cash flows — a toll road, for example, or a power plant, or an apartment building.

Cash Flow 14

Cash Flow Real Estate Assets Nonprofit 14

Harvard Business Review

DECEMBER 17, 2010

Avoid using a single metric. In some companies this will be seen as seeking recognition where it's due but in others it will be interpreted as amassing assets at the expense of the company in times of low cash flow," says Barankay. For example, "You don't earn your quota just by making the sale," says Daniels.

Compensation 15

Compensation Metrics Cash Flow Sales 15

Harvard Business Review

MARCH 21, 2013

In the 1920s, while companies used return on equity to assess their performance, DuPont recognized that the single metric had its limits. Operating efficiency (sales over assets). Financial leverage (assets over equity). So it began disaggregating return on equity into three components.

Cash Flow 10

Cash Flow Assets Benchmarking Sales 10

Harvard Business Review

JUNE 10, 2015

The basic point was that online advertising was too small, and that transaction sizes were too insignificant to be anything other than a step down for companies used to rich cash flows. It is natural and appropriate to seek to leverage existing assets and capabilities.

Media 13

Media Advertising Balance Sheet Cash Flow 13

Harvard Business Review

MARCH 31, 2015

bank in assets, JP Morgan Chase , announced that in August, hackers had accessed its security system and that approximately seven million small businesses and 76 million households had been affected by a data breach. In the beginning of October, 2014, the largest U.S.

Balance Sheet 13

Balance Sheet Cash Flow Banking Assets 13

Harvard Business Review

JANUARY 18, 2016

Airbnb is an example of a win-win quality improvement: landlords realize more cash flow from their assets, and customers gain both better choice and lower costs in their travel lodging options. These factors include easy transit, clean air and water, green space, and support for arts and recreation.

Real Estate 14

Real Estate Cash Flow B2B ROI 14

Harvard Business Review

FEBRUARY 7, 2017

After all, “short-termism” does not correspond to any single quantifiable metric. Our belief is that the earnings of long-term companies will rely less on accounting decisions and more on underlying cash flow than other companies. With this metric, the gap between long-term companies and the rest is even bigger.

Manager 15

Manager Revenue Metrics Cash Flow 15

Harvard Business Review

JUNE 8, 2018

Their combined assets of $944 billion are an order of magnitude lower than the combined assets of $7,700 billion of the largest 3,177 companies in 1986, when the aggregate market capitalization reached $3 trillion for the first time. Analysts increasingly rely on non-GAAP metrics. Martin Konopka/EyeEm/Getty Images.

Cash Flow 8

Cash Flow Metrics Revenue Assets 8

Harvard Business Review

JULY 11, 2013

These divisions all generated consistent earnings and cash flows. The company also had three divisions — Water, International, and Merchant Investment — that were saddled with underperforming and over-valued assets. A typical SPE requires a company to make cash payments to the SPE if its assets fall in value.

Balance Sheet 8

Balance Sheet Assets Cash Flow Energy 8

Harvard Business Review

OCTOBER 21, 2016

Disruptions in the supply chain may affect production processes that depend on unpriced natural capital assets such as biodiversity, groundwater, clean air, and climate. “Stranded assets” are investments that become obsolete due to regulatory, environmental, or market constraints. billion in mining projects since 2010.

Assets 15

Assets Operations Revenue Energy 15

Chief Executive

MARCH 3, 2023

Yesterday’s core inventory metrics — inventory turnover (cost of goods ÷ average inventory) and inventory GMROI (gross margin ÷ inventory cost) — fail to provide the essential information that managers need to avoid the twin problems of missing critical potential profits while having to write off large tranches of costly inventory.

Metrics 98

Metrics Cash Flow ROI Revenue 98

Harvard Business Review

NOVEMBER 25, 2013

Focus on the metrics that matter. CMOs must demonstrate and track marketing’s impact by focusing on key performance indicators (KPIs) that are important for shareholder value such as strong cash flow, cost of capital, return on capital, and operating margin. Help CFOs focus on the long term.

Benchmarking 9

Benchmarking Metrics Advertising ROI 9

Harvard Business Review

AUGUST 3, 2018

The level and trend of a company’s top-line metric is an advance indicator of the success of its business model. For example, ostensibly, Facebook’s customers are its daily users (call them “asset units” for argument’s sake). Many of these metrics are disclosed in Facebook’s financial statements.

Variable Costs 8

Variable Costs Revenue Assets Cash Flow 8

Walk Me

AUGUST 18, 2022

Managers use benchmarking to learn from other healthcare organizations and set comparative metrics to hit realistic targets. Cash is the most liquid asset of any business, including hospitals and clinical services. However, the capital budgeting process involves much more long-term assets. Working capital management.

Manager 52

Manager Hospitality Insurance Operations 52

Harvard Business Review

JUNE 4, 2014

That is, rather than employ a new technology to disrupt a company’s business model, an upstart disrupts the entire breadth of an entrenched value chain by wresting control of a critical asset. But the critical asset in that value chain is the viewership data that Nielsen provides, which sets the price for advertising. for three years.

Assets 11

Assets Advertising Cash Flow Revenue 11

Chief Executive

JANUARY 31, 2023

Starting with all the assets we have today, how would you now design your team and processes and responsibilities from scratch? So we were aggressive in growth areas, but in a way that always kept an eye on business metrics. Because of our growth, we added people and manual processes that now aren’t required, for instance.

Cash Flow 97

Cash Flow Software Travel ROI 97

Chris LoCutro

NOVEMBER 12, 2024

Financial Closeout and Planning (00:09:10) Discover the key reports and metrics that guide my decision-making—P&L, budgets vs. actuals, and more. I also explain how to avoid common pitfalls, such as mismanaging surplus funds or underestimating seasonal cash flow needs. You know, what are the assets? Yeah, so I.

Assets 59

Assets Revenue Cash Flow Balance Sheet 59