Forging a Stronger Supply Chain

The cost of goods and materials is usually the largest component of a company’s cost structure. Why, then, isn’t every financial manager examining the supply chain? Here are the keys that you can use to open the door to improvement — and play a pivotal role — in the supply chain management process.

When the Gold Standard Lost Its Lustre

“Today gold is redundant; the bond market has replaced it as the ultimate restraint on central banks’ temptation to use monetary expansion as a short cut to prosperity. And, increasingly, inflation targets and institutions such as independent central banks create lastingly stable money. There are few certainties in international finance. But here is one: gold as part of the international monetary system is dead.” … [ Read more ]

Reality Check for Real Options

Applying Black-Scholes analysis to capital spending projects has one big flaw

The 2001 Finance Education Special Report

Finance education and training is the key to building any superior finance team. Whether it’s sending seasoned finance executives or even CFOs to professional development courses, creating custom finance training programs for nonfinance managers, or sending young hires to executive MBA programs, boosting the financial knowledge of the organization can have a direct impact on the bottom line. This month CFO.com separates the fact from … [ Read more ]

Net Income May Not Be The Best Way To Measure All Companies

Over the last few years, it’s become clear that many technology investors don’t know how to value companies that have negative net income. For example, what’s the best way to look at an emerging telecom company that’s building out its network and accruing lots of debt? Net income, when calculated according to U.S. Generally Accepted Accounting Principles, can be distorted and tell an investor little … [ Read more ]

Payback Time: Making Sure ROI Measures Up

IT managers know they have to go back to ROI basics. The hard part is finding the right approach.

ROI: The IT Department’s Moving Target

Return on investment is more about process and the breadth of evaluation parameters than it is about specific tools and technologies. Pick the performance metrics that make the most sense for your project and business goals.

The Second Annual Knowledge Capital Scoreboard: A Knowing Glance

Increasingly, intangible knowledge assets are dwarfing the value of tangible book assets at many companies. But don’t ask for details. While corporate reports heap praise on various efforts to capitalize on knowledge, they fail to supply reliable, objective benchmarks for measuring the values a company gets from its patents, brands, trademarks, capital expenditures, and research-and-development programs.

To assist financial managers in grappling with knowledge assets, … [ Read more ]

Optimize your Balance Sheet for Sustainable Growth (.pdf)

The battlefield of commerce is littered with companies that overemphasized sales growth beyond sustainable levels. Before you have a close encounter with Chapter 11, learn how to streamline your company’s balance sheet for sustainable growth from the experts at Wharton and GE Capital.

Equity Loans: How to Sell What You Do Not Own

The market for lending equities is obscure and privately negotiated, but the benefits are substantial, according to Wharton finance professors Christopher Geczy and David Musto and Wharton doctoral student Adam Reed. In the article below, reprinted from the Financial Times’ Mastering Investment series, the three authors discuss short-selling in equity lending, short selling of IPO stocks and the legal issues of shorting.

Unknown

Money doesn’t have the emotional content of a real motivator. Money is a satisfier, not a motivator. When you don’t have it, it’s all you can think about. But when you have it, you don’t really think about it. Motivation decreases as appetite for money is satisfied.

Has Bank Consolidation Been Good for Customers, or Bad?

As the once-fragmented banking industry continues the consolidation that began a decade and a half ago, what has been the impact of bank mergers on consumers? Are they finding higher fees and fewer free services, or lower interest rates and more service options? Some experts offer their opinions.