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How to Improve Your Finance Skills (Even If You Hate Numbers)

Harvard Business Review

But having a grasp of terms like EBITDA and net present value are important no matter where you sit on the org chart. The most important concepts to grasp are “how to measure profitability, EBITDA, operating income, revenue, and operating expenses,” he says. The Refresher: Net Present Value.

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Which MBAs Make More: Consultants or Small-Business Owners?

Harvard Business Review

million EBITDA company for 4x paying $6 million and using 50% debt financing. To make the analysis tractable, we’ll make some simplifying conservative assumptions: we’ll assume no growth in the business and, because there is no growth, we’ll assume that the selling multiple exactly equals the purchase multiple.

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Shape Strategy With Simple Rules, Not Complex Frameworks

Harvard Business Review

To prioritize projects, for instance, the ALL team could have forecast future cash flows for every potential investment and ranked all proposals on the basis of their net present value. Within three years, ALL's Brazilian rail operations had increased revenues by 50% and tripled EBITDA.