article thumbnail

Not All Metrics Are Created Equal

N2Growth Blog

While analyzing these drivers will give you some basic operating information, they are also somewhat myopic. Let’s begin by stating what should be the obvious – all businesses need to monitor the basic static financial measurements of revenue, expenses, break-even, earnings and cash flow.

Metrics 345
article thumbnail

Life In A High-Performing Company – An Insider View

Tanveer Naseer

Indeed, these organizations roughly double industry averages on five-year ROA, ROI and ROE. You’ll be part of a team Effective working relationships within and across teams are important for more than operating efficiency. From a total rewards standpoint, high performing companies offer their employees a lot. The Good News 1.

Company 264
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Stop Focusing on Profitability and Go for Growth

Harvard Business Review

Equity cash flows, in turn, are a function of a company’s long-term return on equity (ROE), growth, and the value of shareholders’ equity on its books. If a company’s long-term ROE is anticipated to be the value created by improving pre-tax margins will exceed the value created by accelerating growth.

ROE 16
article thumbnail

Don't Confuse Engagement with User Experience

Harvard Business Review

The Android operating system has been outselling Apple's iOS by nearly a 5:1 ratio. Put another way, Apple's UX metric seems to encourage ROE — Return on Engagement — where Android emphasizes ease-of-use and opportunity. Mobile designer Luke Wroblewski captures the conundrum perfectly: What explains. The numbers don't lie.

ROE 14
article thumbnail

A Refresher on Return on Assets and Return on Equity

Harvard Business Review

What is Return on Equity (ROE)? Unlike ROA, you want the ROE to be as high as possible, but there are limitations. Knight explains that “one company may have a higher ROE than another company because it borrowed more money and therefore has greater liabilities and proportionately less equity invested in the company.

ROE 8
article thumbnail

Leading by Cause

Lead Change Blog

He opened the dialogue, saying he and his leadership team had put a lot of thought into where they want to take their bank, and the vision they committed to was to deliver top decile ROE, ROA and topline revenue growth: a quintessential example of focusing on effect, not cause.

P&L 220
article thumbnail

End the Religion of ROE

Harvard Business Review

corporation than "what's the ROE on that?" ROE justifies the means. To an extent not widely recognized, it was an equation in the first place that gave ROE the power to dominate not just investment decisions, but an entire business culture. There is no more powerful question in a U.S. Social media spending? Wellness checkups?

ROE 15