Harvard Business

APRIL 5, 2017

Similarly, considering greater accruals (which represent the difference between reported income and operating cash flows) to measure short-term orientation has its difficulties. It assumes that a smaller proportion of cash flows in earnings indicates a myopic firm.

Metrics 30

Metrics Study Cash Flow McKinsey 30

Harvard Business

OCTOBER 21, 2016

Companies are also experiencing risks in their manufacturing due to resource depletion – particularly water. Water has largely been considered a free raw material and therefore used inefficiently, but many companies are now experiencing the higher costs of using the resource.

Study 28

Study Efficiency Productivity Operations 28

Harvard Business

FEBRUARY 7, 2017

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.

Management 28

Management Metrics Financial Company 28