A Refresher on Debt-to-Equity Ratio

Harvard Business Review

When people hear “debt” they usually think of something to avoid — credit card bills and high interests rates, maybe even bankruptcy. But when you’re running a business, debt isn’t all bad. That’s where the debt-to-equity ratio comes in.

Some Ideas To Help Accelerate Your SWOT Analysis

Six Disciplines

A SWOT analysis is a tool used to assess an organization''s strengths, weaknesses, opportunities and threats. The purpose of using the SWOT tool is to uncover or reveal the organization''s competitive advantages, and what opportunities (sales, profitability) to capitalize upon. It''s also used to articulate the challenges an organization has, enabling contingency plans. Products and Services (price, quality, Finances (stability, profitability, debt to equity ratio).

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Ideas To Help Accelerate Your SWOT Analysis

Six Disciplines

A SWOT analysis is a tool used to assess an organization's strengths, weaknesses, opportunities and threats. The purpose of using the SWOT tool is to uncover or reveal the organization's competitive advantages, and what opportunities (sales, profitability) to capitalize upon. It's also used to articulate the challenges an organization has, enabling contingency plans. Products and Services (price, quality, Finances (stability, profitability, debt to equity ratio).

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The Microfinance Contagion Scenario

Harvard Business Review

That's not to say it's likely, but it is certainly possible and a threat that social investors of all stripes should be thinking about how to defuse. Although the situation in AP remains fluid, one thing hasn't changed over the last few months: repayment rates have fallen to about 10%. A large exposure to AP with its abysmal repayment rates is an existential crisis for MFIs in India. Losses in AP will overwhelm many institutions' equity cushion.

VC Stereotypes About Men and Women Aren’t Supported by Performance Data

Harvard Business Review

According to our research , the answer is “not necessarily.” These stereotypical notions, which cast men as having traits better suited to starting successful companies, don’t hold up when compared with venture performance data from annual reports. This percentage is remarkable because Swedish government venture capitalists must adhere to national and European equality regulations when granting financing to entrepreneurs. That shows some guts to grow.”

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

Harvard Business Review

There are basically four ways to create that value: (1) invest in projects that earn more than their cost of capital; (2) increase profits from existing capital investments; (3) reduce the assets devoted to activities that earn less than their cost of capital; and (4) reduce the cost of capital itself. In effect, the C-suite is saying to salespeople: “go forth and multiply!” Isn’t that a function of risk parameters and the debt-to-equity ratio?

A Refresher on Current Ratio

Harvard Business Review

To know whether a company is truly on the cusp of hitting a $0 balance in their accounts, you can’t simply look at the income statement. You need to run a simple calculation using a few figures. That’s where the current ratio comes in. I talked with Joe Knight, author of the HBR TOOLS: Return on Investment and co-founder and owner of www.business-literacy.com , to learn more about this financial term. What is the current ratio? Give it back to us.”

End the Religion of ROE

Harvard Business Review

Return-on-equity hurdles threaten them all. We think there's more to business success — and that something as straightforward as a simple equation could put capitalism on a better path. To an extent not widely recognized, it was an equation in the first place that gave ROE the power to dominate not just investment decisions, but an entire business culture. A hundred years ago, the focus on squeezing every drop of return out of equity capital made great sense.

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