LSA Global

MAY 9, 2019

How can you expect to pitch a new strategy or product if you are unable to articulate its potential revenue, costs, and return on investment? Cash flow. Identify the critical few leading and lagging key financial metrics that are most important to the performance of your team and your organization. Where to Start.

Balance Sheet 28

Balance Sheet Cash Flow Metrics Revenue 28

Harvard Business Review

FEBRUARY 7, 2013

Consider Zynga, which lost $209 million in 2012 — but is still valued at about $2 billion because of the cash it raised and because its revenue is still growing. Over time, a company's value becomes a function of both growth and cash flow. sustainability) of revenue matters as much as quantity (i.e.

Revenue 13

Revenue Cash Flow SaaS Metrics 13

Harvard Business Review

MAY 17, 2012

Companies spend countless hours tracking financials: assets, liabilities, revenue, expenses, and cash flow. Perhaps that's the result of customer metrics long being seen as "soft" numbers with little clear connection to "hard" numbers like revenue or cash flow.

Cash Flow 15

Cash Flow Assets Metrics Reorganization 15

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

DECEMBER 23, 2013

That’s true as far as it goes—but winning cultures have a hard, metrics-driven element as well. Eventually the company took an open-book approach, changing everyone’s key number to production profit, or production revenue (tons multiplied by price per ton) minus maintenance costs. What makes a number “key”? The biggest opportunities?

Cash Flow 14

Cash Flow Revenue Metrics Engineering 14

Harvard Business Review

DECEMBER 19, 2014

Its revenue comes from franchises ($AU4.77 The company’s 2013 annual report contained the usual statements on income, changes in equity, and cash flows — standard stuff. Metrics that tell you that are leading indicators of future performance — exactly the kind of information savvy investors should expect.

Cash Flow 14

Cash Flow Revenue Operations Retention 14

Harvard Business Review

FEBRUARY 16, 2017

The observation that many “unicorn” companies with no profits — and sometimes no revenues or even fully developed products — get valued so highly makes me skeptical of the idea that the capital market is systematically myopic. Its findings deserve much discussion, debate, and attempts at replication.

Cash Flow 13

Cash Flow Revenue Metrics Government 13

Harvard Business Review

MARCH 31, 2017

“The decision-makers will want to see a simple model that shows revenue, costs, overhead, and cash flow,” he says. The most important concepts to grasp are “how to measure profitability, EBITDA, operating income, revenue, and operating expenses,” he says. ” Focus on key metrics.

Balance Sheet 15

Balance Sheet Metrics Revenue Cash Flow 15

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. After all, “short-termism” does not correspond to any single quantifiable metric. Earnings quality: Accruals as a share of revenue.

Manager 15

Manager Revenue Metrics Cash Flow 15

Harvard Business Review

SEPTEMBER 27, 2011

When the staff conversation turns to operating margins, cash flow, inventory, or revenue, does the CHRO tune out? You should be able to expect your CHRO to offer solutions for improving any of your business metrics through employee alignment and engagement. Your CHRO thinks of email as modern technology.

Cash Flow 15

Cash Flow Human Resources Metrics SaaS 15

Harvard Business Review

JANUARY 11, 2016

These range from uncertain revenues to disagreements over guarantees to concerns about political risk. 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

JULY 13, 2016

Identify the right metrics. In the digital membership economy, the metrics best apt to indicate success are more likely to be around member churn and engagement. For finance, short-term revenue gains do not justify poor treatment of members. Stragglers… Create a membership model just because they want recurring revenue.

Cash Flow 12

Cash Flow Revenue Metrics Sales 12

Harvard Business Review

OCTOBER 13, 2011

are metrics like earnings per share, revenue growth, and cash flow — which happen to be the three most prevalent metrics used in U.S. Well, it isn't — unless it means there isn't enough room to measure anything else. bonus plans, according to our research. The objective? Blasphemy, I know.).

Cash Flow 11

Cash Flow Compensation Metrics Accounts 11

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

JUNE 9, 2014

The conventional wisdom on Wall Street for the last 20 years, with notable exception of the technology bubble at the turn of the century, is that to do so, a company needs around $100 million of annualized revenue and a couple of consecutive profitable quarters. This can lead to bad outcomes for entrepreneurs who hope to create lasting value.

Cash Flow 11

Cash Flow Metrics Revenue Scaling 11

Harvard Business Review

JUNE 8, 2018

An idea with uncertain prospects but with at least some conceivable chance of reaching a billion dollars in revenue is considered far more valuable than a project with net present value of few hundred million dollars but no chance of massive upside. Analysts increasingly rely on non-GAAP metrics.

Cash Flow 8

Cash Flow Metrics Revenue Assets 8

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

MARCH 26, 2015

The marketing and sales team of one major technology vendor, for instance, partnered with risk to assemble a range of financing packages to help its mid-market clients fund upgrades, manage invoice payments, and smooth cash flows. Gauge and influence a customer’s “next best action.”

Risk Management 14

Risk Management Cash Flow Marketing Telecommunications 14

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 Cash Flow 8

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. In that year, these improvements resulted in 15,000 metric tons of CO2 emissions avoided and savings of nearly $11 million. These premiums can reach 20% according to some estimates.

Assets 15

Assets Operations Revenue Energy 15

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. Rolling forecasting also affects cash flow as demand changes due to external factors such as Covid-19.

Manager 52

Manager Hospitality Insurance Operations 52

BCW Institute

MAY 2, 2022

He based his work off of another open source from Verne Harnish, The Rockefeller Habits , where Verne had those six, but he also had strategy and profits and cash flow. What kind of revenue and profit do we need to generate this quarter?” So when we get into KPIs and metrics, sometimes we don’t choose the right number.

Operations 52

Operations Cash Flow Nonprofit Manager 52

Harvard Business Review

OCTOBER 7, 2015

Despite metrics showing impressive overall company performance, the company’s capital deployment strategy was not maximizing shareholder dividends and/or buybacks. In recent years, both companies exhibited compressed margins, flat revenue growth, and lagging returns. revenue composition, economic factors, etc.)

Balance Sheet 12

Balance Sheet Cash Flow Revenue Reorganization 12

Harvard Business Review

JUNE 4, 2014

It’s whether there are any other value chains it can disrupt in industries both desperate enough to be vulnerable — and big enough to fuel Apple’s further growth beyond its current $171 billion in annual revenues. After all, even modest 6% growth at this point equates to more than $10 billion in new revenue. An HBR Insight Center.

Assets 11

Assets Advertising Cash Flow Revenue 11

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. So we were aggressive in growth areas, but in a way that always kept an eye on business metrics.

Cash Flow 97

Cash Flow Software Travel ROI 97

High Scalability

NOVEMBER 25, 2019

What is your revenue model? Customers start with a 15-day free evaluation trial period and after that, they convert to paid account with revenue model based on number of seats, storage and other enterprise features. It is 12 years old currently and cash flow positive. We later went on and raised $137.5 Miscellaneous.

Scaling 21

Scaling Engineering A/B Testing Manager 21

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. What, what are those? Yeah, so I.

Assets 59

Assets Revenue Cash Flow Balance Sheet 59

Harvard Business Review

DECEMBER 19, 2017

Likewise, what is the right set of metrics that company executives should use to manage their subscription businesses in order to hold themselves fully accountable to their stakeholders? For example, they may create revenue forecasts that use inputs such as macroeconomic trends for key demographic segments.

Revenue 8

Revenue Retention Sales Sales 8