Cost of Capital, EPS and Working Capital

We Can’t Study Short-Termism Without the Right Metrics

Harvard Business Review

APRIL 5, 2017

If a company has beat or missed its EPS targets by less than two cents , that means the company has nipped and tucked its quarterly results just enough to meet the target EPS number it committed to analysts. Of these, the last indicator is perhaps the most likely to accurately capture a company’s short-termism.

EPS

EPS Metrics Depreciation Short-term

Finally, Proof That Managing for the Long Term Pays Off

Harvard Business Review

FEBRUARY 7, 2017

Earnings-per-share (EPS) growth: Difference between EPS growth and true earnings growth. We hypothesize that long-term companies are less likely to overindex on analyst metrics like EPS and less likely to consistently take actions (such as share repurchases) that boost EPS.

Long-term

Long-term EPS Short-term Management

Leadership Digital

We Can’t Study Short-Termism Without the Right Metrics

Finally, Proof That Managing for the Long Term Pays Off

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