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. What would better measures be?

EPS 9

EPS Metrics Depreciation Short-term 9

Harvard Business Review

APRIL 9, 2015

Some of those costs and expenses aren’t cash-based, either. Income statements almost always include an allowance for depreciation of capital assets. Once the plant starts operating, for instance, you might need to spend an additional $2 million on inventory. At first glance the return looks great: 30% every year.

ROI 8

ROI Analysis Rate of Return Net Present Value 8

Harvard Business Review

OCTOBER 21, 2016

This can disrupt a firm’s ability to operate on schedule and budget. McKinsey reports that the value at stake from sustainability concerns can be as a high as 70% of earnings before interest, taxes, depreciation, and amortization. ” Improving risk management.

Supply Chain 8

Supply Chain Price Loyalty Efficiency 8

Harvard Business Review

FEBRUARY 7, 2017

New research, led by a team from McKinsey Global Institute in cooperation with FCLT Global , found that companies that operate with a true long-term mindset have consistently outperformed their industry peers since 2001 across almost every financial measure that matters. In this case its capital charge is $800 times 8%, or $64.

Long-term 8

Long-term EPS Short-term Management 8