Remove Cost of Capital Remove Examples Remove Finance Remove Working Capital
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The Rise of FinTech in Supply Chains

Harvard Business Review

They enable both the buyer and supplier to improve their working capital by making it possible for the former to extend its payables and at the same time accelerate payment to the latter. The use of FinTechs allows suppliers to access funding at the multinationals firm’s lower cost of capital.).

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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. It indicates what is left after all costs and expenses are subtracted from the company’s revenue. Excerpted from. HBR TOOLS: Return on Investment. Joe Knight. Add to Cart.

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

Harvard Business Review

The goal of strategy is profitable growth, meaning economic value above the firm’s cost of capital. In my experience, most CEOs, CFOs, and other C-suite executives involved in strategy formulation know these finance basics. It may seem that sales has little impact on the fourth value-creation lever, the firm’s cost of capital.

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Finally, Proof That Managing for the Long Term Pays Off

Harvard Business Review

We know from FCLT surveys , for example, that 61% of executives and directors say that they would cut discretionary spending to avoid risking an earnings miss, and a further 47% would delay starting a new project in such a situation, even if doing so led to a potential sacrifice in value.