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The Most Common Mistake People Make In Calculating ROI

Harvard Business Review

Sure, you may know this already, but people who haven’t studied finance often find this statement confusing. Finance & Accounting Tool. Some of those costs and expenses aren’t cash-based, either. Income statements almost always include an allowance for depreciation of capital assets. Excerpted from.

ROI 8
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Providing Earnings Guidance? Think Again

Harvard Business Review

Less Volatility in Stock Price: The net effect of providing guidance is arguably a less volatile stock price, which can result in a lower beta and a lower cost of capital. FD) constraints.

CFO 11
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Finally, Proof That Managing for the Long Term Pays Off

Harvard Business Review

To help provide a better factual base for this debate, MGI, working with McKinsey colleagues from our Strategy & Corporate Finance practice as well as the team at FCLT Global, began last fall to devise a way to systemically measure short-termism and long-termism at the company level. Earnings quality: Accruals as a share of revenue.