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What is Your Real Income

Martinka Consulting

I’m working with a private equity firm to find add-on HVAC, plumbing, electrical, or refrigeration companies for their plumbing construction firm in the Seattle area (so if you know of any doing at least $5 million in sales who want an investor let me know). Not to mention no management reports, no metrics, KPIs, etc.

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

Harvard Business

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.

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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. To construct our Corporate Horizon Index, we identified five financial indicators, selected because they matched up with five hypotheses we had developed about the ways in which long- and short-term companies might differ.