Remove Cost of Capital Remove Depreciation Remove Operations Remove Rate of Return
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The Most Common Mistake People Make In Calculating ROI

Harvard Business Review

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

ROI 8
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The Comprehensive Business Case for Sustainability

Harvard Business Review

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.