article thumbnail

Why Financial Acumen Is More Important Than You Think

Niagara Institute

You’re sitting at your first meeting as a new member of your organization’s management team. The head of finance is talking about cash flow, debt to equity ratio, and EBITA. You are thrilled to be in this new role and faced with new responsibilities outside of the functional job you once excelled in.

article thumbnail

Find Your Ideal Job and Build Your Dream Business

Leading Blog

Realizing that you can gain education from both environments allows an opportunity for you to thrive as an employee and manage a successful side hustle. As a result of limited job functions in a large corporate environment, it doesn’t give you the full breadth of work involved in successfully managing an enterprise.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

A Refresher on Debt-to-Equity Ratio

Harvard Business Review

In fact, analysts and investors want companies to use debt smartly to fund their businesses. That’s where the debt-to-equity ratio comes in. What is the debt-to-equity ratio? “It’s a simple measure of how much debt you use to run your business,” explains Knight.

article thumbnail

The Microfinance Contagion Scenario

Harvard Business Review

Losses in AP will overwhelm many institutions' equity cushion. The average debt-to-equity ratio of the 10 largest MFIs in India is 7.06 , indicating an average 12% equity cushion. In microfinance, just as in corporate finance, one of the key ratios driving investors is the debt-to-equity ratio.

article thumbnail

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

Harvard Business Review

This notion is reflected by statements such as “We have seen similar examples of driven, competent men who take risks and manage to make it thrive,” and “He has proven to sustain his persistence all the way.” Debt-to-equity ratio (leverage): the degree to which an entrepreneur exposes his or her business to risks.

article thumbnail

End the Religion of ROE

Harvard Business Review

He reasoned that if marketers worked on maximizing return on sales, production managers were rewarded for the sales they squeezed out of their physical plant, and finance managers focused on minimizing the amount of equity capital they needed, ROE would take care of itself. Then banking regulations were imposed.

ROE 13