Remove Cash Flow Remove Efficiency Remove Research
article thumbnail

What U.S. CEOs Should Do with the Money from Corporate Tax Cuts

Harvard Business

tax law is likely to increase after-tax cash flows for U.S.-based There’s a strong argument that they should invest in growth , and the newly available cash offers them a unique chance to do so. The intrinsic value of a company with growing cash flows doubles every time the discount rate is cut in half.

Cash Flow 115
article thumbnail

We Can’t Study Short-Termism Without the Right Metrics

Harvard Business

The McKinsey Global Institute, in conjunction with FCLT Global, recently released research stating that long-term-oriented companies perform better than those that focus on short-term results. This measure has been validated by extensive academic research. So this measure may mislabel efficient companies as myopic.

Metrics 99
Insiders

Sign Up for our Newsletter

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

article thumbnail

Stop Focusing on Profitability and Go for Growth

Harvard Business

See More Videos > See More Videos > To elaborate, a company’s intrinsic equity value reflects the long-term cash flows that shareholders expect to receive over time, discounted at the appropriate risk-adjusted cost of equity capital. Bain recently completed research on workforce productivity.

Cash Flow 134
article thumbnail

Severe Weather Threatens Businesses. It’s Time to Measure and Disclose the Risks

Harvard Business

Research shows that abnormal weather disrupts the operating and financial performance of 70% of businesses worldwide. When weather conditions are on average adverse over days, weeks, or entire seasons, shortfalls in sales cause reduced cash flows and can lead to financial distress and business failure. or any combination).

article thumbnail

The Comprehensive Business Case for Sustainability

Harvard Business

On the contrary, academic research and business experience point to quite the opposite. Drawing from our own research and our colleagues’ research in this area, we have created a sustainability business case for the 21 st century corporate executive. billion from reduced energy and wastewater consumption in manufacturing.

Study 70
article thumbnail

60 day Excel Expert

freshminds

But the knowledge needed to perform these tasks efficiently is vast and complicated. Day 47 DCF (Discounted Cash Flow). All the future incoming and outgoing cash flows are estimated and discounted to give Present Values (PVs). Short bursts over a long period of time will ensure that these become innate skills.