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Why We Need to Update Financial Reporting for the Digital Era

Harvard Business

However, many investors seem to have concluded that the most successful companies with tens of billions of dollars of valuation today could never have justified their valuation at the start of their operation based on discounted cash flow. Investors are paying more attention to ideas and options than to earnings.

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Give Your Team the Freedom to Do the Work They Think Matters Most

Harvard Business

Operators set their work schedules and their vacations, design and monitor their own performance indicators, do their own maintenance, and are consulted on the choice of new machinery. In one of its German plants, teams self-direct most activities and managers have transitioned into the role of coaches without formal authority.

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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. The most important concepts to grasp are “how to measure profitability, EBITDA, operating income, revenue, and operating expenses,” he says. Related Video. ” scenarios.

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Shockingly Bad Fiscal Health of Chicago (and the Financial Engineering Chicago Uses to Hide that Fact)

MishTalk

The Corporate Fund is Chicago’s general operating fund. Chicago’s property tax revenues do not go into its general operating fund. Although most governments are required to balance their budgets on a cash flow basis each fiscal year, a structural budget gap can arise when recurring expenditures are greater than recurring revenues.

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Subscription Businesses Are Booming. Here’s How to Value Them

Harvard Business

This is a relatively simple exercise when analysts have access to rich enough data (say, a firm’s transaction log) – in such a case, we can directly observe how old each and every customer was, and there are time-tested models traditionally employed by actuaries to predict drop-off patterns by tenure across customer cohorts.