Harvard Business Review

JUNE 18, 2015

By reporting the results of a survey of private equity investing practices, our sample represents PE firms across a spectrum of investment strategies, size, industry specialization, and geographic focus. Rather, they rely on internal rates of return and multiples of invested capital.

CAPM 8

CAPM Discounted Cash Flow Company Rate of Return 8

Harvard Business Review

AUGUST 27, 2015

Companies in the top one-fifth of profitability earn, in aggregate, about 70 times more economic profit (accounting profit less cost of capital) than those in the middle three-fifths combined, according to McKinsey’s database of 3,000 large, publicly listed, nonfinancial U.S. companies have enjoyed supernormal rates of return.

ROIC 8

ROIC McKinsey GDP Company 8

Harvard Business Review

OCTOBER 21, 2016

Significant cost reductions can result from improving operational efficiency through better management of natural resources like water and energy, as well as minimizing waste. One study estimated that companies experience an average internal rate of return of 27% to 80% on their low carbon investments.

Supply Chain 8

Supply Chain Price Loyalty Efficiency 8