Let's learn. Having a negative
cash conversion cycle
can be very beneficial for
the cash flows of a business,
especially if that
business is growing.
Rather than requiring
more and more cash
to increase inventory,
the business
can rely on the credit
from its suppliers. #HBS#FA
Let's learn. Earnings before interest after taxes, or EBIAT, is a measure of how much income the business has generated while ignoring the effect of financing and capital structure, or the proportion of debt that the business has. #HBS#accounting#FA
Let's learn. The willingness to pay for the advertisement can be calculated simply as:
Average profit*expected increase in quantity demanded
#HBS#Economics
Let's learn. There are two parts to the relative cost analysis. First, understand your costs. Second, estimate your competitor’s cost. The first part might appear straightforward. Think again. #HBS#Economics