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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.

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

Harvard Business Review

We analyzed companies’ debt-to-equity ratio, equity ratio, risk buffer, property mortgage or the mortgage of the venture’s real estate ratio, the use of bank overdraft facilities/approved checking account ratio, and long-term liabilities or loans ratio. Risk-taking.

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A Refresher on Current Ratio

Harvard Business Review

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? It’s one of several liquidity ratios that measure whether you have enough cash to make payroll in the coming year, explains Knight.

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End the Religion of ROE

Harvard Business Review

Biologists use the term "runaway" to describe what happens when a single criterion dominates the mating choices of a species to the exclusion of other valuable traits. The lesson: Return on Equity, like peacock tail splendor, is a very poor guide for allocating resources. Then banking regulations were imposed. It fails for two reasons.

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