AIHR

JANUARY 11, 2023

The main responsibility of finance is to allocate and monitor resources that support the goals of the organization while ensuring a balance between revenue and costs. Improving financial strategy: HR needs to understand the factors that drive costs and revenue in their organization. The foundations of finance for HR.

Cash Flow 136

Cash Flow Balance Sheet Assets Revenue 136

Harvard Business Review

APRIL 9, 2015

But before anyone writes a check, you need to calculate the return on investment (ROI) by comparing the expected benefits with the costs. Analyzing ROI isn’t always as simple as it sounds and there’s one mistake that many managers make: confusing cash and profit. Profit appears on a company’s income statement.

ROI 15

ROI Cash Flow Revenue Balance Sheet 15

Harvard Business Review

APRIL 4, 2016

In the broadest sense, says Knight, “it’s the ultimate ROI” “It tells you what percentage of every dollar invested in the business was returned to you as profit.” ” Another reason you might see a very high ROA is if a company is messing with its balance sheet, explains Knight. Take Enron.

Assets 14

Assets Balance Sheet Cash Flow Banking 14