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A Refresher on Debt-to-Equity Ratio

Harvard Business Review

In fact, analysts and investors want companies to use debt smartly to fund their businesses. That’s where the debt-to-equity ratio comes in. What is the debt-to-equity ratio? “It’s a simple measure of how much debt you use to run your business,” explains Knight.

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The Microfinance Contagion Scenario

Harvard Business Review

Losses in AP will overwhelm many institutions' equity cushion. The average debt-to-equity ratio of the 10 largest MFIs in India is 7.06 , indicating an average 12% equity cushion. In a recent paper, Jonathan Morduch and Jonathan Conning explain the role of debt and equity financing in the microfinance industry.

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VC Stereotypes About Men and Women Aren’t Supported by Performance Data

Harvard Business Review

This notion is reflected by statements such as “We have seen similar examples of driven, competent men who take risks and manage to make it thrive,” and “He has proven to sustain his persistence all the way.” Debt-to-equity ratio (leverage): the degree to which an entrepreneur exposes his or her business to risks.

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A Refresher on Current Ratio

Harvard Business Review

This is called “ factoring ” Whether you can quickly liquidate inventory can also be industry-dependent. As with the debt-to-equity ratio , you want your current ratio to be in a reasonable range, but it “should always be safely above 1.0,” says Knight. Most require that it be 1.1

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A Refresher on Price Elasticity

Harvard Business Review

This is one of the key metrics for marketing managers, says Avery. “You have to look at it in context of the industry and its competitive structure and in the context of consumers’ lives.” ” What are some of the common mistakes managers make with price elasticity? How do companies use it?

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What You Don’t Know About Sales Can Hurt Your Strategy

Harvard Business Review

Hence, the customer-selection criteria of sales managers, and call patterns of sales reps, directly impact the first value-creation lever: which projects the firm invests in. But creating value also requires senior executives to get more serious and knowledgeable about performance-management issues in sales. But consider the basics.

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End the Religion of ROE

Harvard Business Review

A hundred years ago, the focus on squeezing every drop of return out of equity capital made great sense. As the industrial revolution progressed, society was enjoying enormous benefits from mass production, which brought former luxuries within middle class reach. But unlike websites, factories were capital intensive.

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