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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.

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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.

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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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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.

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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.

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A Refresher on Current Ratio

Harvard Business Review

If your business has $2,750 in current assets and owes $1,174 in current liabilities (again, you can pull these figures from your company’s balance sheet) then the current ratio is: (Note that the ratio isn’t usually expressed in a percentage). ” But the ratio can also be too high. Most require that it be 1.1

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A Refresher on Price Elasticity

Harvard Business Review

This is one of the key metrics for marketing managers, says Avery. You’ll hear managers say, “my product is price sensitive” or “we’re lucky to have a product that’s not sensitive to price.” ” What are some of the common mistakes managers make with price elasticity?

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