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. 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?

Find Your Ideal Job and Build Your Dream Business

Leading Blog

I S IT POSSIBLE to have your cake and eat it too? If there was a way to find your ideal job and build your dream business, would you consider both? Most people see this dichotomy and feel that they need to choose one dream over the other. Having worked with more than 10,000 entrepreneurs, innovators, inventors, hobbyists and side hustlers, they often struggle with when it is appropriate to leap from the job environment into the entrepreneurship maze.

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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

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. Hence, the customer-selection criteria of sales managers, and call patterns of sales reps, directly impact the first value-creation lever: which projects the firm invests in.

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.”

A Refresher on Price Elasticity

Harvard Business Review

In fact, determining price is one of the toughest things a marketer has to do, in large part because it has such a big impact on the company’s bottom line. To better understand this concept and how it impacts marketing, I talked with Jill Avery, a senior lecturer at Harvard Business School and an author of HBR’s Go To Market Tools. Say that a clothing company raised the price of one of its coats from $100 to $120.