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

Harvard Business Review

However, firms can efficiently increase margin growth without much revenue growth by managing to squeeze out their fixed costs to service the same level of output. McKinsey’s margin growth measure classified firms that report higher earnings growth than revenue growth as myopic. What would better measures be?

EPS 8
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An HBR Refresher on Breakeven Quantity

Harvard Business Review

” The other forms of ROI often require a more complex understanding of financial concepts such as the firm’s cost of capital or the time value of money. To figure total costs you first multiply the unit quantity sold by the variable costs per unit, then you add the fixed costs.