article thumbnail

Bank Valuation: Understanding Key Ratios and Metrics

Tom Spencer

In the previous article , we looked at how banks make money and how they must meet capital requirements. In this article, we will explore the importance of profitability ratios and valuation metrics that are crucial when analyzing banks. It is not a useful metric for comparing different business lines.

Metrics 88
article thumbnail

A Better Metric for the Value of a Worker Training Program

Harvard Business

But according to the World Bank , only 30% of youth employment programs are successful, with many of those offering only marginal benefit. These metrics are useful but miss the big picture, in part because they mistake a program’s cost for its value. Debating the utility of specific metrics might seem like a minor thing.

Metrics 132
Insiders

Sign Up for our Newsletter

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

article thumbnail

Top 10 Steps to Better Design Strategy Success Metrics

LSA Global

Top 10 Steps to Better Design Strategy Success Metrics Workplace metrics impact workplace behaviors and performance. Designing the right strategy success metrics can mean the difference between a leadership team collectively steering toward its strategic targets and veering off course. Makes sense right? Wells Fargo opened 3.5

Metrics 68
article thumbnail

Should a CEO’s Bonus Be Based on Financial Performance Alone?

Harvard Business

On November 9, 2016, the shareholders of Australia’s largest company, and the world’s tenth-largest bank , revolted. Corporations are now taking a further step beyond objective metrics, which can be financial and nonfinancial, to include subjective measures — tagged as “soft.”

Financial 120
article thumbnail

PERFORMANCE MEASUREMENT: Are you doing enough to ensure success?

Effective Managers

Session 2: Metrics vs Strategy. Input metrics are essential as these metrics are leading indicators of your eventual output metrics and results achievement. They have a significant tendency to focus on outcome metrics instead of their company strategy. Learn more about Session 1 and register here: [link].

Metrics 130
article thumbnail

Spotlight on European Bank Lending: Capital Impairment to the Forefront

MishTalk

As noted in German Two-Year Bonds Have Negative Yield, Demand High; Euro Bond Bubble Guaranteed to Burst , " Banks lend (provided they are not capital impaired), when credit-worthy borrowers want credit and banks perceive risks worth lending." The New York Times DealBook explains Europe Fears Banks Lack Cash Cushion to Cover Bad Loans.

Banking 66
article thumbnail

What’s Driving Superstar Companies, Industries, and Cities

Harvard Business

To analyze the superstar dynamics of firms, our metric was economic profit, a measure of a firm’s profit above and beyond opportunity cost. (To The top 10% of the firms we analyzed — the superstars by our metric — create 80% of all the economic value, meaning they account for 80% of economic profits.

Industry 132