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Bank Valuation: Understanding Key Ratios and Metrics

Tom Spencer

In this article, we will explore the importance of profitability ratios and valuation metrics that are crucial when analyzing banks. There are seven key profitability ratios and two valuation metrics that it is important to understand. It is not a useful metric for comparing different business lines.

Metrics 88
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Asset Management – Industry Overview (Part 1 of 4)

Tom Spencer

These asset classes can include public equities/stocks, fixed income/bonds, money markets, commodities, infrastructure, real estate and alternative strategies – including hedge funds, private equity and venture capital. Asset management can be broadly divided into retail and institutional asset managers depending on whose money they handle.

Industry 113
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Is Execution Where Good Strategies Go to Die?

Harvard Business

” When leaders “execute a strategy,” they usually mean the former — putting an idea into action. Execution is often where strategies go to die. So what determines whether execution brings life or death to your strategy? .” On the other, it means, “the carrying out of a death sentence.”

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To Change Your Strategy, First Change How You Think

Harvard Business

” Beyond the usual financial metrics, JetBlue also measures the strength of its culture and the quality of its experience. But that was the outcome, not the strategy. ” GE is also using very different metrics for its platform businesses. For example, most retailers are merchants using technology.

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Toys ‘R’ Us Is Dead, but Physical Retail Isn’t

Harvard Business

The news is part of a larger trend of closings that some are calling the retail apocalypse. The rise of e-commerce, combined with a shift in consumer preference toward dining out over shopping and with years of overbuilding , has made for distinctly unattractive economics in traditional retail. billion purchase of Whole Foods.

Retail 36
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Don’t Be Tyrannized by Old Metrics

Harvard Business

While effective metrics are essential for focusing attention and achieving results, they can also overpower better sense. Most industries cower to a few central metrics, the yardsticks that define the winners and losers. Metrics tried and proven over years become a guide to what’s important, driving resource allocation.

Metrics 28
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Online Retailers Should Care More About the Post-Purchase Experience

Harvard Business

Soon retail brands aligned their strategies around two critical moments: 1) when a customer decides whether to purchase a product, and 2) when a customer uses the product for the first time. Today, retail brands create customer experiences around these four moments and focus on driving shoppers to click the “buy” button.

Retail 37