article thumbnail

10 Reasons Why Every Manager Should take a Finance Course

Great Leadership By Dan

We just finished a “ Finance and Accounting for the Non-Financial Manager ” program this week for a large client. You’ll understand that the people or companies that buy your products are not your only customers; the shareholders that buy your stock are customers too. Finance and accounting is very sexy!

Finance 246
article thumbnail

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

Harvard Business Review

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. After all, if you’re trying to sell a product or strategy, you need to be able to demonstrate that it is both practical and high margin.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

A Refresher on Internal Rate of Return

Harvard Business Review

You’ve got a great idea for a new product that will increase revenue or a new system that will cut the company’s costs. There are a variety of methods you can use to calculate ROI — net present value , payback, breakeven — and internal rate of return , or IRR. A Refresher on Net Present Value.

article thumbnail

Why We Need to Update Financial Reporting for the Digital Era

Harvard Business Review

Business students have traditionally considered net present value, payback period, and hurdle rates as necessary tools to determine which project to select. This notion, that risk is a desirable feature, can seem like sacrilege to anyone who’s taken an introductory finance course.

Report 8
article thumbnail

Debt and the Future of the U.S.

Harvard Business Review

During the financial crisis, the world came to the apparently shocking realization that debt financing entails risks. trillion, roughly 10% of gross domestic product (GDP). Consider, for example, that the estimated net present value of obligations under the Social Security system is approximately $8 trillion.

GDP 15
article thumbnail

How CMOs Can Get CFOs on Their Side

Harvard Business Review

This lack of an analytical approach has traditionally formed a barrier between marketing and finance. CFOs are more interested in capital investment estimates, net present values, and a clear outline of the trade-offs of any investment. They’re going to make ads and do whatever it is they do. Ask for the CFO’s help.

CFO 8
article thumbnail

The Most Common Mistake People Make In Calculating ROI

Harvard Business Review

Sure, you may know this already, but people who haven’t studied finance often find this statement confusing. Finance & Accounting Tool. You might also find that your accounts receivable (A/R) — what customers owe you for services rendered or products delivered — rises by $1 million. Excerpted from.

ROI 8