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What is a Healthy Company?

Markovitz Consulting

Financial Performance Milton Friedman is the primary exponent of the belief that a company’s sole purpose is making a profit: “There is one and only one social responsibility of business—to use its resources and engage in activities designed to increase its profits,” he wrote in 1970. What makes for a healthy company?

Company 124
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Mish Fined 8,000 Euros for Quoting French Blog

MishTalk

trillion balance sheet is leveraged nearly 49-to-1. As a group, these three banks have some €4 trillion in assets on their balance sheets, supported by €129.3 The effects of a system that ''encourages excessive financial leverage''. By its own account, Credit Agricole''s tangible common equity is just 2.1% billion (€489.9

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How the Great Recession Changed Banking

Harvard Business

The banks that have nearly completed their regulatory agenda have a head start, since they can free up more financial and human resources to address evolving technology. That strengthened investment banks’ balance sheets by forcing them to scale back and to change the nature of the risks they take.

Banking 73
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Stop Focusing on Profitability and Go for Growth

Harvard Business

Bain & Company’s Macro Trends Group carefully analyzed the global balance sheet and found that the world is awash in money. Global capital balances more than doubled between 1990 and 2010 — from $220 trillion (about 6.5 So, in real terms, debt financing is essentially free. times global GDP).

Cash Flow 136
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Why Apple Is Getting into the Energy Business

Harvard Business

Energy-efficient lighting, motors, and other hardware continue to make good sense for many firms, whether financed on the balance sheet or by third parties who provide the upfront capital and then share the savings on future power bills. What can today’s non-energy CEOs do to prepare their firms for a prosumer future?

Energy 70
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M&A deals – benefits and drawbacks

Tom Spencer

Increased market share : assuming the two companies are in the same industry, bringing their resources together may result in larger market share. Enhanced financial resources : the financial wherewithal of two companies is generally greater than one alone, making new investments possible. Potential Drawbacks. Conclusion.

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BIS Slams the Fed; Ridiculous Question of the Day: "Is The Fed Going To Attempt A Controlled Collapse?"

MishTalk

Historical evidence shows that this rarely happens following a balance sheet recession. They encapsulate the self-reinforcing interactions between perceptions of value and risk, risk-taking and financing constraints which translate into financial booms and busts. Financial cycles differ from business cycles.