Harvard Business Review

JULY 13, 2015

Both of these numbers come from your company’s balance sheet. So you want to strike a balance that’s appropriate for your industry. In banking and many financial-based businesses, it’s not uncommon to see a ratio of 10 or even 20, but that’s unique to those industries. How do companies use it?

Accounts Payable 15

Accounts Payable Balance Sheet Cash Flow Accounts 15

Harvard Business Review

MARCH 14, 2017

Travel loyalty programs tend to be complex and multicurrency, making them different from retailers, which typically run simple discount programs, or from banks, which offer cash back or a single currency that can be spent easily across a range of merchants. Early adopters could benefit considerably.

Travel 15

Travel Balance Sheet Banking Revenue 15

Harvard Business Review

APRIL 9, 2015

If a company earns a $500,000 profit in a calendar year, shouldn’t it have $500,000 more in the bank on December 31 than it did on January 1 of that year? It indicates what is left after all costs and expenses are subtracted from the company’s revenue. True ROI analysis has to convert revenue to profit, and profit to cash.

ROI 15

ROI Cash Flow Revenue Balance Sheet 15

Harvard Business Review

SEPTEMBER 16, 2016

For example, at the end of its 2015 fiscal year, Apple’s balance sheet stated tangible assets of $290 billion as a contribution to its annual revenues, with approximately $141 billion worth of intangible assets — a combination of intellectual capital, brand equity, and (investor and consumer) goodwill.

Balance Sheet 13

Balance Sheet Assets Insurance Operations 13

Harvard Business Review

NOVEMBER 22, 2016

banking and insurance businesses. For one telecom provider, convincing just 10% of those customers to switch one service from a competitor was worth up to $480 million in incremental annual revenue. A similar story can be told in retail banking, insurance, credit cards, retail, and other industries. Take a balance-sheet view.

Balance Sheet 12

Balance Sheet Insurance Telecommunications Banking 12

Harvard Business Review

SEPTEMBER 25, 2017

It has been 10 years since the global financial crisis, and the fall-out continues in the industry that was at its epicenter: banking. There has been a truly dramatic retrenchment from foreign markets, making banking a rare case of an industry becoming less, rather than more, global. For some banks, the answer is simply: Yes.

Banking 8

Banking Assets Balance Sheet Marketing 8

Harvard Business Review

APRIL 4, 2016

Banks, Knight says, tend to have low ROAs around 1%. ” Another reason you might see a very high ROA is if a company is messing with its balance sheet, explains Knight. Banks, for example, get as many deposits as they can and then loan them out at a higher return. Well, that depends again on your industry.

Assets 14

Assets Balance Sheet Cash Flow Banking 14

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

JULY 12, 2017

While the large banks are at the center of this trust vacuum — with a seemingly steady stream of scandals, such as the recent Wells Fargo account rigging debacle — the erosion of trust is bad for everyone. 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

JANUARY 9, 2015

Interest rates of zero meant that central banks took to targeting asset prices – stocks and bonds – to boost spending. Both of these reinforcing trends have created a tax revenue problem for governments. The simplest way to boost demand is to give power to central banks to transfer cash in equal amounts to all households.

Banking 12

Banking Assets Government Balance Sheet 12

Harvard Business Review

SEPTEMBER 14, 2015

If your business has $2,750 in current assets and owes $1,174 in current liabilities (again, you can pull these figures from your company’s balance sheet) then the current ratio is: (Note that the ratio isn’t usually expressed in a percentage). or higher, says Knight, though some banks may go as low as 1.05.

Accounts Payable 15

Accounts Payable Assets Balance Sheet Accounts 15

Harvard Business Review

AUGUST 12, 2016

Most of these companies are private and don’t publish their balance sheets. But a new analysis from the German Savings Banks Association shows that, in the last fiscal year, its midsize company clients managed, on average, profit margins of 7.3%. By contrast, the 110 largest German companies had margins of just 6.3%.

Balance Sheet 15

Balance Sheet B2B Recruitment Retention 15

Harvard Business Review

MAY 28, 2018

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. Then a new CFO joined the company: Masashi Oka, a financial industry veteran who had played a key role in transforming Mitsubishi UFJ Financial Group-owned Union Bank in the US.

Balance Sheet 11

Balance Sheet Cash Flow Banking Fixed Costs 11

Harvard Business Review

NOVEMBER 6, 2013

These factors have led to questions over the quality of banks’ balance sheets and whether many of the loans extended in recent years can actually be repaid, raising further doubts over the sustainability of the debt-fueled model. 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

FEBRUARY 7, 2018

Yet few have formally quantified the size of their revenue at risk and potential liability. To reduce the future impact from natural disasters, governments and international organizations like the Red Cross and the World Bank collect and share data concerning the destructive ramifications and the support required to help victims.

Insurance 8

Insurance Balance Sheet Government Scaling 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

Harvard Business Review

MARCH 15, 2012

Andrew Haldane, the Bank of England official whose speeches I recently praised to the heavens , has an excellent explanation of why highly leveraged financial institutions probably shouldn't be controlled by shareholders with limited liability: [F]or banks, equity is a vanishingly small fraction of their balance sheet.

Banking 17

Banking Balance Sheet Recruitment Revenue 17

Harvard Business Review

JULY 27, 2011

London's planned budget was inked in at one-fifth of that figure, subject to achieving all commercial revenue targets. No sooner had Beijing's flame died than the global financial crisis took British debt levels above 60% of GDP, excluding public intervention in failing banks. Sponsorship revenues are case in point.

Balance Sheet 13

Balance Sheet Banking Revenue Scaling 13

Peter Winick

NOVEMBER 25, 2024

Rajeev Peshawaria Well, you know, I started out as a banker and after a few years in in mainland banking, I was a currency trader back in the mid-18th century. Bill Sherman Issue, and that’s on the wrong side of the line because it’s on the expenses rather than tied to revenue. Rajeev Peshawaria Yeah. So it’s a cost.

Compliance 233

Compliance Talent Development Education Risk Management 233

Chris LoCutro

NOVEMBER 12, 2024

They've not done a really good job reconciling their bank accounts. You know, here's brand new sales, here's monthly recurring revenue. Right where we would be doing events and we would have these months that would have just these fantastic amounts of revenue come in and then we would tank. Yeah, so there are, there's a lot.

Assets 59

Assets Revenue Cash Flow Balance Sheet 59