Harvard Business Review

MAY 17, 2012

Three-quarters of the world's CEOs say more emphasis should be placed on measuring the value of non-financial assets such as intellectual capital and customer relationships. Companies spend countless hours tracking financials: assets, liabilities, revenue, expenses, and cash flow.

Cash Flow 15

Cash Flow Assets Metrics Reorganization 15

Harvard Business Review

MARCH 10, 2011

With a record $2 trillion in cash and short-term liquid assets on hand, U.S. Fully 79 percent of companies, including 91 percent with annual revenues greater than $1 billion, use discounted cash flow techniques. One wonders what the remaining 9 percent with annual revenues greater than $1 billion do.).

Cash Flow 14

Cash Flow Assets Revenue Benchmarking 14

Harvard Business Review

APRIL 4, 2016

There are people who disagree with that adage, of course, some saying that cash and cash flow are more important (and too often ignored). Let’s start with return on assets. What is Return on Assets (ROA)? “ROA simply shows how effective your company is at using those assets to generate profit.”

Assets 14

Assets Balance Sheet Cash Flow Banking 14

Harvard Business Review

DECEMBER 2, 2010

Horizon 1 (H1) represents the current core operations of a company that produce the cash flow needed to sustain operations, to meet investor expectations, and to invest in future growth. Horizon 2 (H2) represents businesses that are generating fast-growing revenue streams. We call this the Opportunity Value (OV) of an asset.

Cash Flow 15

Cash Flow Assets Engineering Banking 15

Harvard Business Review

OCTOBER 15, 2014

It initially lost about half of its revenues by divesting its copper and zinc smelting business, but by 2010 it had quadrupled its revenues to €2 billion through a combination of acquisitions and organic growth. For example, Umicore’s 2003 acquisition of PMG increased its revenues by 50%.

Cash Flow 14

Cash Flow Revenue Sales Sales 14

Harvard Business Review

JULY 13, 2015

You take your company’s total liabilities (what it owes others) and divide it by equity (this is the company’s book value or its assets minus its liabilities). They want to know, says Knight, “Does the company have the ability to develop revenue, profit, and cash flow to cover expenses?”

Accounts Payable 15

Accounts Payable Balance Sheet Cash Flow Accounts 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. These range from uncertain revenues to disagreements over guarantees to concerns about political risk. Corporations might even get involved.

Cash Flow 14

Cash Flow Real Estate Assets Nonprofit 14

Harvard Business Review

MARCH 23, 2015

They figure out how much the new computer system and software will cost and they compare that with the cash flow generated through efficiencies (assuming they know how to analyze returns based on cash flow). billion write-down as an expense against its revenue because the projections were not realistic.

Cash Flow 14

Cash Flow ROI Manager Accounts 14

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

OCTOBER 25, 2011

Even accounting rules specifically dealing with reputation — goodwill and intangible assets — are subject to frequent rule changes and endless debate. And the mathematics of long-term financial success — revenues, profits, cash flow — square perfectly with this scorecard.

Cash Flow 13

Cash Flow Accounts Compliance Assets 13

Harvard Business Review

JUNE 18, 2015

For instance, despite the prominent role that discounted cash flow valuation methods play in academic finance courses, few PE investors use discounted cash flow or net present value techniques to evaluate investments. Rather, they rely on internal rates of return and multiples of invested capital.

Cash Flow 14

Cash Flow Engineering Government Operations 14

Harvard Business Review

NOVEMBER 24, 2015

It is big in terms of the total corporate assets that are being re-assigned to new owners. Alternatively, if I sell my car to an Uber driver, or the owner of a taxi medallion, that same asset may be put to a different use and become more valuable to customers or society. It is merely a transfer of future revenues from the U.S.

Scaling 12

Scaling Cash Flow Assets Benefits 12

Harvard Business Review

OCTOBER 21, 2016

Of the respondents, 72% said that climate change presents risks that could significantly impact their operations, revenue, or expenditures. Disruptions in the supply chain may affect production processes that depend on unpriced natural capital assets such as biodiversity, groundwater, clean air, and climate. Some 62.4%

Assets 15

Assets Operations Revenue Energy 15

Harvard Business Review

OCTOBER 10, 2013

Return on assets. Cash flow return on investment. The shortcut to doing that is to reduce the denominator by abandoning difficult markets, shedding assets, or cutting costs. As Raynor and Mumtaz show in “ Three Rules for Making a Company Truly Great ,” companies don’t become great by reducing costs or assets.

Cash Flow 9

Cash Flow Assets Revenue Marketing 9

Harvard Business Review

FEBRUARY 7, 2017

Among the firms we identified as focused on the long term, average revenue and earnings growth were 47% and 36% higher, respectively, by 2014, and market capitalization grew faster as well. Earnings quality: Accruals as a share of revenue. Margin growth: Difference between earnings growth and revenue growth.

Manager 15

Manager Revenue Metrics Cash Flow 15

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. There is also immediate ROI for investments in basic services as population moves in, because they capture new revenues from new users.

Real Estate 14

Real Estate Cash Flow B2B ROI 14

Harvard Business Review

OCTOBER 31, 2014

Of course, that “success” didn’t come with a lot of revenue. billion in cash and short-term investments — and my sense from looking at the numbers for the past couple of quarters is that it could probably be making some money, too (that is, generating positive free cash flow), if that were a priority.

Marketing 13

Marketing Cash Flow Software Media 13

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. Martin Konopka/EyeEm/Getty Images.

Cash Flow 8

Cash Flow Metrics Revenue Assets 8

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. These companies’ valuation of their data assets begins with a commercial business case.

Balance Sheet 8

Balance Sheet Cash Flow Assets Operations 8

Harvard Business Review

AUGUST 3, 2018

It failed to meet its revenue and subscriber growth targets. Information on revenue and its drivers are, without doubt, the digital companies’ most value-relevant disclosures from the investors’ perspective. The company’s first revenues indicate the acceptance of its product or services by customers.

Variable Costs 8

Variable Costs Revenue Assets Accounts 8

Harvard Business Review

JULY 17, 2018

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

Cash Flow 8

Cash Flow Revenue Accounts Sales 8

Harvard Business Review

APRIL 10, 2013

Scale-up means growth, and growth means jobs, wealth, and tax revenues. I met him again two months ago: six years later he had scaled up by a factor of ten — all the result of organic growth — and employs over 6000 people. Even better.

Balance Sheet 10

Balance Sheet Government Scaling Cash Flow 10

Chief Executive

MARCH 3, 2023

Precision Inventory Management In the prior Age of Mass Markets, which occurred throughout most of the 20th century, revenue maximization was the right objective. Diminishing unit costs, in turn, meant more revenues and profits. Diminishing unit costs, in turn, meant more revenues and profits. Step 3 – Fully-optimized inventory.

Metrics 98

Metrics Cash Flow ROI Revenue 98

Zenefits

JULY 27, 2022

As your small business continues to scale, cash flow transparency and accounting efficiency become harder to maintain. The objective for most businesses is to grow revenue, but with your success, you may need to adjust your accounting tool and expense tracking process periodically. Poor cash flow visibility.

Accounts 52

Accounts Accounts Payable Cash Flow Software 52

Walk Me

AUGUST 18, 2022

For example, a small hospital may lose revenue to a neighboring hospital with several MRI scanners. The cost of the scanner would then be set against the potential increase in revenue and lead to a decision-making outcome. Cash is the most liquid asset of any business, including hospitals and clinical services.

Manager 52

Manager Hospitality Insurance Operations 52

Harvard Business Review

OCTOBER 28, 2016

Combining the second-largest wireless carrier with the fourth-biggest entertainment company — one whose impressive assets include HBO and CNN — is likely to create an unassailable mobile-entertainment business. You gain market power, allowing you to price the asset higher than you could otherwise. But they’re wrong.

Assets 13

Assets Cash Flow Media Advertising 13

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. After all, even modest 6% growth at this point equates to more than $10 billion in new revenue. for three years. When Innovation Is Strategy.

Assets 11

Assets Advertising Cash Flow Revenue 11

Harvard Business Review

JUNE 26, 2015

A major challenge for all retailers is managing the closures in a way that maximizes revenues and profits. ” On a year-over-year basis, stores undergoing liquidation often earn more revenue during liquidation than during Black Friday weekend or other high demand periods.

Cash Flow 12

Cash Flow Revenue Banking Operations 12

Harvard Business Review

DECEMBER 21, 2015

The proposal, according to Icahn, would generate an estimated $200 billion in federal tax revenues on those holdings. At the end of fiscal 2015 (September 26), Apple had $187 billion in liquid assets abroad, up $50 billion from a year earlier. corporations are holding $2.6 billion in dividends. corporations do not need tax breaks.

Cash Flow 13

Cash Flow Revenue Assets Administration 13

Chief Executive

JANUARY 31, 2023

And Liberty Mutual is among those companies that have been slashing costs significantly by shifting to a cloud environment amid extreme revenue pressures in the insurance industry. Starting with all the assets we have today, how would you now design your team and processes and responsibilities from scratch?

Cash Flow 97

Cash Flow Software Travel ROI 97

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

I also explain how to avoid common pitfalls, such as mismanaging surplus funds or underestimating seasonal cash flow needs. Acquisitions: Physical and Human Resources (00:31:00) Why understanding your business needs versus wants is crucial when evaluating new hires or assets. Here's what the income should look like.

Assets 59

Assets Revenue Cash Flow Balance Sheet 59

Harvard Business Review

MAY 1, 2017

million would raise considerable revenue and would make it less necessary to rely on stealth tax increases such as phasing out deductions and exemptions. The restriction of deductions is an important step toward the goals of simplifying the tax code and raising more revenue, and it is relatively progressive. Finally, the U.S.’s

Cash Flow 8

Cash Flow Administration Revenue Small Business 8

Harvard Business Review

AUGUST 22, 2017

The two central questions in tax policy are how much revenue to raise and how to allocate the tax burden among income groups. Tax reform advocates start with a framework in which the amount of tax revenue raised and the distribution of tax burdens are held roughly constant. Unfortunately, the prospects for reform are not promising.

Cash Flow 8

Cash Flow Revenue Administration Education 8