Harvard Business Review

MARCH 1, 2024

To do that, executives need to rediscover the concept of economic profit (EP) — that is, revenue minus not just operating and administrative costs, but also the cost of the capital needed to produce that revenue.

EPS 28

EPS Cost of Capital Strategy Cost 28

Harvard Business Review

APRIL 5, 2017

While a laudable effort in principle, measuring a company’s tendency to make myopic operating and investing decisions is fiendishly complex. But the other indicators probably pick up legitimate differences in how companies in the sample operate, as opposed to whether they are myopic. On the surface, this measure looks reasonable.

EPS 12

EPS Metrics Depreciation Short-term 12

Harvard Business Review

OCTOBER 13, 2015

But the strengthening creates a serious challenge for the big American multinationals with large foreign operations. The real problem is that the earnings from their substantial foreign operations are translated back to the home country financials to produce fewer dollars of net profit.

EPS 8

EPS Short-term Cost of Capital Long-term 8

Harvard Business Review

MARCH 17, 2011

A friend of mine, Godfrey Sullivan , asked me to consider running the operations for the Americas unit at Autodesk. Carol wanted to promote someone from within; however, that executive lacked the broad discipline knowledge of channels, marketing and sales ops. Here's what happened. Only sheer politeness kept me from hanging up.

EPS 17

EPS Strategy Reference Execution 17

Harvard Business Review

FEBRUARY 4, 2013

Just under 1,000 companies account for half of the world's market capitalization, Eccles notes. Breakthrough requires an end to systemic inequities by opening up processes, information - and markets. Companies like Unilever are on an open innovation drive, while GSK and Novartis are focusing on access to medicines in poorer markets.

EPS 9

EPS Innovation CEO Pharmaceuticals 9

Harvard Business Review

JANUARY 30, 2013

In fact, Amazon was only operating at such a high burn rate because it could. That opportunistic approach to financial markets has defined Amazon since it went public in 1997. When Uncle Wall Street (also known as Mr. Market ) is in a generous mood, Bezos is always ready to take advantage by putting investment ahead of profitability.

Training 13

Training Bond Christensen Long-term 13

Harvard Business Review

APRIL 7, 2015

Consider management actions such as cutting jobs and investment as a response to currency fluctuations and the resulting accounting impact of those cuts on earnings per share (EPS). Share buybacks are preferred to investment in innovation, entrepreneurship, and value creation. This is a situation that cannot endure.

Management 8

Management Drucker EPS Short-term 8