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101 Things I Learned in Business School

Leading Blog

B USINESS is not a discipline, but an endeavor made up of disciplines such as accounting, communications, economics, finance, leadership, management, marketing, operations, psychology, sociology, and strategy. perpetually exceed the cash receipts from the previous, smaller sales volume.

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A Refresher on Internal Rate of Return

Harvard Business Review

There are a variety of methods you can use to calculate ROI — net present value , payback, breakeven — and internal rate of return , or IRR. What is internal rate of return? The IRR is the rate at which the project breaks even. Finance & Accounting Article. How is it calculated?

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Why Are Companies Sitting on Cash Right Now?

Harvard Business Review

Many companies sit on piles of cash, even when rates of return suggest they shouldn’t. Researchers have pointed to multiple reasons, including flexibility for M&A and tax advantages. But new research suggests it’s also a form of insurance, especially for smaller firms.

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7 Tips How Investing Can Help You Secure a Better Future

Strategy Driven

While they may not offer double-digit returns, they certainly come with a higher rate of return than a basic savings account. That’s page 1 of Finance 101—higher the risk, higher the return. Retirement savings are an essential part of any portfolio. They aren’t as boring as some investors assume them to be.

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What Private Equity Investors Think They Do for the Companies They Buy

Harvard Business Review

In particular, we are interested in how many of their responses correlate with what academic finance knows and what it teaches. Rather, they rely on internal rates of return and multiples of invested capital. the notion that debt financing can be “cheap” at certain times).

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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. HBR TOOLS: Return on Investment. Finance & Accounting Tool. It’s where your company’s finance department will ask the toughest questions and scrutinize your estimates and assumptions most carefully.

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A Refresher on Payback Method

Harvard Business Review

There are a variety of ways to calculate a return on investment (ROI) — net present value , internal rate of return , breakeven — but the simplest is payback period. But without returns in future years you’re not actually making anything on your investment. Finance & Accounting Article.