Harvard Business Review

MARCH 31, 2017

If you’re not a numbers person, finance is daunting. But having a grasp of terms like EBITDA and net present value are important no matter where you sit on the org chart. “You are not going to be involved in running projects unless you understand the financials,” he says. What the Experts Say.

Finance 8

Finance Skills EBITDA Net Present Value 8

Harvard Business Review

MARCH 23, 2015

If you want approval for a new project — purchasing new equipment or computer systems, applying for a patent, building a new store — chances are you need your company’s finance department on board. To get the green light, it helps to understand how finance people think. Finance & Accounting Tool.

Finance 8

Finance NPV CFO ROI 8

Harvard Business Review

JUNE 8, 2018

Business students have traditionally considered net present value, payback period, and hurdle rates as necessary tools to determine which project to select. Digital companies, in contrast, chase risky projects that have lottery-like payoffs. Risk is now considered a feature, not a bug.

Report 8

Report GAAP Net Present Value CFO 8

Harvard Business Review

APRIL 9, 2015

Sure, you may know this already, but people who haven’t studied finance often find this statement confusing. Finance & Accounting Tool. Once the plant starts operating, for instance, you might need to spend an additional $2 million on inventory. Excerpted from. HBR TOOLS: Return on Investment. Joe Knight. Add to Cart.

ROI 8

ROI Analysis Rate of Return Net Present Value 8

Harvard Business Review

NOVEMBER 25, 2013

Moreover, the previous year’s survey showed that 63 percent of projects do not use analytics to inform marketing decisions. This lack of an analytical approach has traditionally formed a barrier between marketing and finance. But it’s no good speaking the same language as the CFO if marketing itself is a Tower of Babel.

CFO 8

CFO Short-term Long-term Benchmarking 8

Harvard Business Review

SEPTEMBER 27, 2012

Employees frequently attribute breakdowns to incompetence or bad faith on the part of colleagues in other departments: "Those bozos in headquarters [or finance or marketing] screw everything up." Within three years, ALL's Brazilian rail operations had increased revenues by 50% and tripled EBITDA.

Strategy 8

Strategy Proposal Guidelines Net Present Value 8

Harvard Business Review

MAY 1, 2017

Today, the average cost of equity capital sits at close to half that: just 8% for the roughly 1600 companies comprising the Value Line Index. So, in real terms, debt financing is essentially free. In these circumstances, strategies that generate faster growth create more value for most companies than those that improve profit margins.

ROE 14

ROE Long-term GDP Six Sigma 14