Musings on Markets

FEBRUARY 12, 2025

In this post, I will focus on how companies around the world, and in different sectors, performed on their end game of delivering profits, by first focusing on profitability differences across businesses, then converting profitability into returns, and comparing these returns to the hurdle rates that I talked about in my last data update post.

Hurdle Rate 74

Hurdle Rate Accounting Investments Economics 74

Global Finance

FEBRUARY 4, 2025

Societe Generale also offers a dedicated and simplified solution to retail clients or small and midsize enterprises (SMEs) based on their ESG rating. Finally, establishing connectivity to CRX Markets improves support for Societe Generales largest clients to help grow the banks SCF programs.

Finance 52

Finance Invoicing Banking Manufacturing 52

Musings on Markets

FEBRUARY 10, 2021

What is a hurdle rate for a business? There are multiple definitions that you will see offered, from it being the cost of raising capital for that business to an opportunity cost , i.e., a return that you can make investing elsewhere, to a required return for investors in that business. What is a hurdle rate?

Hurdle Rate 52

Hurdle Rate Currencies Investments Valuation 52

Musings on Markets

AUGUST 19, 2024

In fact, the business life cycle has become an integral part of the corporate finance, valuation and investing classes that I teach, and in many of the posts that I have written on this blog. Tech companies age in dog years, and the consequences for how we manage, value and invest in them are profound.

Corporate Finance 123

Corporate Finance Valuation Investments Finance 123

Musings on Markets

JANUARY 31, 2024

In my last three posts, I looked at the macro (equity risk premiums, default spreads, risk free rates) and micro (company risk measures) that feed into the expected returns we demand on investments, and argued that these expected returns become hurdle rates for businesses, in the form of costs of equity and capital.

Hurdle Rate 82

Hurdle Rate Profit and Loss Accounting Investments 82

CFO News Room

JANUARY 18, 2023

Income from financial holdings (including cash balances, investments in financial securities and minority holdings in other businesses) are added back, and interest expenses on debt are subtracted out to get to taxable income. Returns on Invested Capital (or Equity).

Marketing 130

Marketing Hurdle Rate Investments Accounting 130

Musings on Markets

FEBRUARY 27, 2022

Income from financial holdings (including cash balances, investments in financial securities and minority holdings in other businesses) are added back, and interest expenses on debt are subtracted out to get to taxable income.

Hurdle Rate 99

Hurdle Rate Investments Accounting Entertainment 99