Remove Debt to Equity Ratio Remove Finance Remove Innovation
article thumbnail

What You Don’t Know About Sales Can Hurt Your Strategy

Harvard Business Review

In my experience, most CEOs, CFOs, and other C-suite executives involved in strategy formulation know these finance basics. (Or, Isn’t that a function of risk parameters and the debt-to-equity ratio? Or, they learn fast after a few investor meetings.) But consider the basics.

article thumbnail

End the Religion of ROE

Harvard Business Review

DuPont sent Donaldson Brown, a promising engineer-turned-finance staffer, to Detroit to sort things out, and sort them out he did. Brown noted a simple fact: Return on equity can be broken down into a three-part equation. An innovation-based measure would lead to an acceleration in investment with positive benefits for growth.

ROE 14