Chief Executive

NOVEMBER 15, 2022

Since shareholder value is driven by investor expectations of future cash flow and EP growth (See S&P 500 Warranted Value of Discounted Economic Profits vs. Actual Traded Value chart, below), EP has been used as the profitability metric for AlixPartners’ Automotive Value Creation study.

Cash Flow 52

Cash Flow Manager Fixed Costs Metrics 52

Chief Executive

MAY 26, 2022

Manage your business “on the basis of cash, not on the basis of accounting,” Charan said, reminding his audience that Jeff Bezos built Amazon into a multi-billion-dollar company partly by putting cash on the throne of his operating philosophy. Make granular cash-flow forecasts. Look at fixed costs separately.”. •

Cash Flow 52

Cash Flow Digital Transformation Fixed Costs Balance Sheet 52

Monday Task Management

MARCH 15, 2022

You’ll often hear people talk about income statements, a statement of operations, a statement of earnings, a statement of profit and loss — well, they all mean the same thing. You’ll often see a profit and loss statement called a statement of operations, income statement, or statement of earnings. You’re not alone.

Revenue 52

Revenue Cash Flow Variable Costs Operations 52

Harvard Business Review

MAY 19, 2015

Wall Street began charging a “conglomerate discount,” saying that diverse operations were hard to analyze with confidence. True synergies across the diverse operations were often hard to see. Before, a big conglomerate like GE diversified its risks by mixing pro-cyclical and counter-cyclical businesses.

Cash Flow 15

Cash Flow Engineering Fixed Costs Sales 15

Harvard Business Review

APRIL 5, 2017

While a laudable effort in principle, measuring a company’s tendency to make myopic operating and investing decisions is fiendishly complex. But the other indicators probably pick up legitimate differences in how companies in the sample operate, as opposed to whether they are myopic.

Metrics 11

Metrics Cash Flow Revenue Compensation 11

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 14

Fixed Costs Assets Cash Flow Variable Costs 14

Harvard Business Review

OCTOBER 7, 2015

The activist in this case would convince senior management to issue debt and reallocate free cash towards a higher/special dividend and a significant share repurchase. Sometimes it doesn’t make sense for companies operating in the same space to continually compete. The Investor Who Combines Closely Tied Competitors.

Balance Sheet 12

Balance Sheet Cash Flow Revenue Reorganization 12