Harvard Business Review

APRIL 5, 2017

Repaying such profits to shareholders through share repurchases is better than misinvesting that cash to diversify into unrelated businesses in which management has no expertise or overinvesting in projects that may not return cost of capital. As I said earlier, measuring a company’s short-term orientation is incredibly tricky.

EPS 8

EPS Metrics Depreciation Short-term 8

Harvard Business Review

OCTOBER 25, 2018

To analyze the superstar dynamics of firms, our metric was economic profit, a measure of a firm’s profit above and beyond opportunity cost. (To To do this, we take the firm’s returns, deduct the cost of capital, and multiply by the firm’s total invested capital.)

Industry 13

Industry Company GDP Bottom-up 13

Harvard Business Review

MAY 4, 2012

Less Volatility in Stock Price: The net effect of providing guidance is arguably a less volatile stock price, which can result in a lower beta and a lower cost of capital. CFOs can be similarly transparent concerning the key performance metrics that will drive future revenue and earnings. FD) constraints.

CFO 11

CFO Metrics Price Depreciation 11

Harvard Business Review

NOVEMBER 25, 2013

Focus on the metrics that matter. CMOs must demonstrate and track marketing’s impact by focusing on key performance indicators (KPIs) that are important for shareholder value such as strong cash flow, cost of capital, return on capital, and operating margin. Help CFOs focus on the long term.

CFO 8

CFO Short-term Long-term Benchmarking 8

Harvard Business Review

AUGUST 21, 2015

Plugging those numbers into the formula, you’d get a price elasticity of demand of: Note that the negative is traditionally ignored and the absolute value of the number is used to interpret the price elasticity metric, as it’s the magnitude of distance from zero that matters and not whether it’s positive or negative.

Price 8

Price Debt to Equity Ratio Marketing Metrics 8

Harvard Business Review

MARCH 31, 2015

Shareholders still don’t have good metrics, tools, and approaches to measure the impact of cyber attacks on businesses and translate that into a dollar value. This mismatch between the stock price and the medium and long-term impact on companies’ profitability should be addressed through better data.

Price 8

Price Long-term Banking Short-term 8

Harvard Business Review

OCTOBER 21, 2016

In that year, these improvements resulted in 15,000 metric tons of CO2 emissions avoided and savings of nearly $11 million. Wal-Mart, for example, aimed to double fleet efficiency between 2005 and 2015 through better routing, truck loading, driver training, and advanced technologies.

Supply Chain 8

Supply Chain Price Loyalty Efficiency 8