Harvard Business Review

JUNE 22, 2016

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.).

Supply Chain 10

Supply Chain Cost of Capital Transportation Finance 10

Harvard Business Review

SEPTEMBER 8, 2014

The goal of strategy is profitable growth, meaning economic value above the firm’s cost of capital. Smartly reducing assets devoted to activities that earn less than their cost of capital requires good links with evolving market realities. ( Isn’t that a function of risk parameters and the debt-to-equity ratio?

Debt to Equity Ratio 10

Debt to Equity Ratio Cost of Capital Strategy Incentives 10

Harvard Business Review

APRIL 9, 2015

Investments in inventory and A/R are shown on a company’s balance sheet (a “snapshot” of a company’s financial position at a point in time) and are included in working capital — funds used in the operation of a business, often defined as current assets minus current liabilities. Evaluate the investment.

ROI 8

ROI Analysis Rate of Return Net Present Value 8

Harvard Business Review

APRIL 5, 2017

However, higher accruals can reflect either innocuous aspects of certain business models, such as in the construction industry, where the time lag between earning income and realizing cash is long, or that growing firms retain higher working capital to meet greater current and future customer demand. What would better measures be?

EPS 8

EPS Metrics Short-term Depreciation 8

Harvard Business Review

FEBRUARY 7, 2017

.” Economic profit represents a company’s profit after subtracting a charge for the capital that the firm has invested (working capital, fixed assets, goodwill). Consider, for example, Company A, which earns $100 of after-tax operating profit, has an 8% cost of capital and $800 of invested capital.

Long-term 8

Long-term EPS Short-term Sample 8