article thumbnail

Why Accounting in Business is Important

Strategy Driven

Profitability In business, profitability is defined as the income generated by a company from sales of products or services. Liquid assets are cash, securities, receivables, and other financial assets that can be converted into cash within a short period, like a day or two.

article thumbnail

Collaboration as an Intangible Asset

Harvard Business Review

Interestingly, intangible assets are all the rage these days on Wall Street. Investors grapple daily in an effort to figure out how to value companies whose accounting assets — things like land, capital, products, and licenses — don't adequately express their true market value.

Insiders

Sign Up for our Newsletter

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

article thumbnail

How to Make Organizational Change Enduring

Six Disciplines

Here''s a real shocker: In a survey of 3,300 senior managers and human resource professionals reported by Rob Lebow in his Washington CEO magazine. Most organizations say their most important assets are their people, but few behave as if this were true. 75% of all organizational change programs fail. Why is change so hard ?

article thumbnail

What VW Didn’t Understand About Trust

Harvard Business Review

In a strange way, VW’s chicanery only reinforces how important it is for products today to be environmentally safe. Decades ago, a company’s market value was nearly equivalent to its tangible assets—buildings, machinery, materials, financial capital, and so on. How many car buyers will trust VW now? Is it toxic?

article thumbnail

What Younger Workers Can Learn from Older Workers, and Vice Versa

Harvard Business Review

What we asked people was, at this point in their lives, are they actively building, maintaining, or depleting their tangible and intangible assets? Actively building both tangible and intangible assets is crucial to creating a long and productive working life. How to be financially proficient.

article thumbnail

Do You Know What Your Company’s Data Is Worth?

Harvard Business Review

Data contributes not only to brand equity, but to what constitutes product and service delivery in globally connected and hyper-competitive markets. Using the same formula, Apple’s intangible assets in 2014 were $280 billion — or almost twice the value of its 2015 calculation.

article thumbnail

What’s Driving Superstar Companies, Industries, and Cities

Harvard Business Review

We focus on economic profit rather than revenue size, market share, or productivity growth because these other metrics risk including firms that are simply large and may not create economic value. Productivity can help; but it is not enough to achieve superstardom.