Harvard Business Review

APRIL 9, 2015

Sure, you may know this already, but people who haven’t studied finance often find this statement confusing. HBR TOOLS: Return on Investment. Finance & Accounting Tool. At first glance the return looks great: 30% every year. A project or initiative that is likely to take several months will be harder.

ROI 8

ROI Analysis Rate of Return Net Present Value 8

Harvard Business Review

APRIL 16, 2012

To enhance financial flexibility, companies have been retaining unprecedented amounts of cash on their balance sheets, calling it "strategic" cash to distinguish it from the "operating" cash that is needed to run the business. high technology or pharmaceutical) that are investing in projects with uncertain long-range payoffs.

Company 13

Company Cost of Capital Finance Long-term 13

Harvard Business Review

APRIL 30, 2015

. “At most companies, the cost of capital is a mechanical calculation done by the finance people. Then the management team takes that number and decides on the discount rate, or hurdle rate, that you have to exceed to justify an investment,” he says. or 11% as the discount rate. or 11% as the discount rate.

Cost of Capital 8

Cost of Capital Cost Finance Discount 8

Harvard Business Review

SEPTEMBER 15, 2017

But these claims are very rarely backed up by large-scale evidence, and often driven by a misunderstanding of how buybacks actually operate. Fewer companies would go public, instead financing themselves by taking on more debt. Investment only creates value if its returns are higher than the other projects shareholders could invest in.

Short-term 8

Short-term Long-term Intangible Assets Rate of Return 8

Harvard Business Review

FEBRUARY 8, 2018

They did not spend as much time thinking about local events that have implications for their emerging market operations. We believe that business-friendly candidates could win, but companies should make sure that their Mexico investments have an acceptable rate of return even under this populist scenario.

Market Risk 9

Market Risk Marketing Supply Chain Company 9