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Why We Need to Update Financial Reporting for the Digital Era

Harvard Business

This notion, that risk is a desirable feature, can seem like sacrilege to anyone who’s taken an introductory finance course. Business students are taught to value a company based on the discounted amounts of future cash flows or earnings. Analysts increasingly rely on non-GAAP metrics.

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How to Improve Your Finance Skills (Even If You Hate Numbers)

Harvard Business

“The decision-makers will want to see a simple model that shows revenue, costs, overhead, and cash flow,” he says. Of course, there are also myriad books and reference guides on the topic. ” Focus on key metrics. That metric is often expressed in the form of a ratio. Play with numbers.

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Financial Shenanigans Versus Incompetence

Martinka Consulting

The Wall Street Journal and others recently reported about an accounting expert who had predicted the Madoff Ponzi scheme and recently went after GE for what he said are their deceptive accounting practices (of course, GE responded this person didn’t know what he was talking about).

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What is Your Real Income

Martinka Consulting

About 15 years ago I started using the term “free cash flow,” which is pretty much the same as what’s above. Not to mention no management reports, no metrics, KPIs, etc. The trouble with having an open mind, of course, is that people will insist on trying to put things in it.” Anticipated capital expenditures.

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Finally, Proof That Managing for the Long Term Pays Off

Harvard Business

After all, “short-termism” does not correspond to any single quantifiable metric. Our belief is that the earnings of long-term companies will rely less on accounting decisions and more on underlying cash flow than other companies. With this metric, the gap between long-term companies and the rest is even bigger.

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Hussman's Open Letter to the Fed; The Problem with Bubbles; Textbook Pre-Crash Bubble; Reflections on Not Chasing Bubbles; Integrity vs. Respect

MishTalk

The fact that profits as a share of GDP are more than 70% above their historical norm should immediately raise a question as to whether current year earnings or next year’s projected “forward earnings” should be used as a sufficient statistic for long-term cash flows and equity market valuation without any further reflection.

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The Importance of Business Acumen for High Performance

LSA Global

Take a financial acumen course , do online research, or invest in a textbook on the subject. Cash flow. Identify the critical few leading and lagging key financial metrics that are most important to the performance of your team and your organization. Learn the Fundamentals of Business. Operating income.