Musings on Markets

JANUARY 5, 2024

The numbers that I computed opened my eyes to how much perspective on the high, low, and typical values, i.e., the distribution of margins, helped in valuing the company, and how little information there was available, at least at that time, on this dimension. Aggregate operating numbers 3. Insider, CEO & Institutional holdings 2.

Valuation 105

Valuation Financial Analysis Analyzing Data Profit and Loss 105

Musings on Markets

MARCH 5, 2025

Cash Return in 2024 Let's start with the headline numbers. Breaking down global companies by region gives us a measure of variation on cash return across the world, both in magnitude and in the type of cash return: It should come as no surprise that the United States accounted for a large segment (more than $1.5

Corporate Finance 52

Corporate Finance Investments Finance Hurdle Rate 52

Global Finance

FEBRUARY 4, 2025

Implementing DTSCF can be more complex than traditional SCF due to the increased number of parties involved and the need to track payments across multiple tiers. In DTSCF, large corporations extend financing beyond their immediate tier 1 suppliers to those suppliers suppliers (tiers 2, 3, and beyond).

Finance 52

Finance Invoicing Banking Manufacturing 52

Musings on Markets

AUGUST 19, 2024

Setting the Stage The notion of a business life cycle is neither new nor original, since versions of it have floated around in management circles for decades, but its applications in finance have been spotty, with some attempts to tie where a company is in the life cycle to its corporate governance and others to accounting ratios.

Corporate Finance 119

Corporate Finance Valuation Investments Finance 119

Musings on Markets

MARCH 8, 2023

The dividend principle, which is the focus of this post is built on a very simple principle, which is that if a company is unable to find investments that make returns that meet its hurdle rate thresholds, it should return cash back to the owners in that business.

Hurdle Rate 102

Hurdle Rate Corporate Finance Investments Finance 102

Musings on Markets

FEBRUARY 15, 2023

Starting with gross margins, and computing the number for all non-financial service firms, we report the distribution of gross margins across publicly traded companies at the start of 2023, again based upon gross income and sales in the most recent twelve months: While the median gross margin across all publicly traded global firms is about 30%.,

Profit and Loss 52

Profit and Loss Investments Hurdle Rate Accounting 52

Musings on Markets

JANUARY 6, 2023

Mean reversion : I am not a knee-jerk believer in mean reversion, but the tendency for numbers to move back towards averages is a strong one. Counter made-up numbers : It remains true that people (analysts, market experts, politicians) often make assertions based upon either incomplete or flawed data, or no data at all.

Valuation 52

Valuation Corporate Finance Financial Analysis Leverage 52

Barry Ritholtz

MAY 9, 2023

He co-chairs a number of the asset management investment committees. And my dad had always said, as many young kids get this advice, doctor, lawyer, accountant, engineer. SALISBURY: And accountant seemed like a reasonable option. And I kind of stumbled my way into accounting. What can I say about Julian Salisbury?

Investments 119

Investments Banking Advertising Numbers 119

Musings on Markets

JANUARY 9, 2021

In closing, I also want to dispense with the notion that data is objective and that numbers-focused people have no bias. Finally, it is worth noting that, notwithstanding the travails of last year, the number of firms in the data universe increased from 44,394 firms at the start of 2020 to 46,579 firms, a 4.9%

Valuation 52

Valuation Currencies Numbers Corporate Finance 52

CFO News Room

NOVEMBER 8, 2022

” look at the Monte Carlo simulations, look at what is the hurdle rate. But we want it on the calendar so that we keep clients and ourselves accountable so that we make sure that those meetings actually do happen. And so, that can move the numbers, as well. Did things change significantly since we updated the plan?,”

Restructuring 130

Restructuring Planning Marketing Accounting 130

Musings on Markets

JANUARY 12, 2021

Last week, was my data week, where I download and analyze data on all publicly traded companies, listed anywhere in the world, and I will post extensively on what the numbers look like after a most tumultuous year. As we approach the turn of the calendar year, I have my own set of rituals that prepare me for the new year.

Valuation 52

Valuation Corporate Finance Finance Investments 52

Barry Ritholtz

FEBRUARY 21, 2023

BUCKLEY: They were all institutional separate accounts. We’ve always been a virtual company, just used to be through the mail and 1-800 number when I joined. So that’s a number I hadn’t seen before. Number one, you put it back into the business. That means a low hurdle rate. RITHOLTZ: Wow.

Leadership 111

Leadership Investments Profit and Loss Technology 111

Musings on Markets

FEBRUARY 27, 2023

Furthermore, do they optimize they debt ratios to deliver the lowest hurdle rates. Book versus Market : The book debt ratio is built around using the accounting measure of equity, usually shareholder's equity, as the value of equity. Do companies optimize financing mix?

Corporate Finance 52

Corporate Finance Finance Marketing Banking 52

Musings on Markets

JANUARY 20, 2021

The failures of the signal have been variously attributed to low interest rates, accounting mis-measurement of earnings (especially at tech companies), and by some, to animal spirits. Data Update 4 for 2021: The Hurdle Rate Question. Data Update 2 for 2021: The Price of Risk!

Treasury 52

Treasury Investments Valuation Marketing 52

Barry Ritholtz

NOVEMBER 8, 2022

So, you’ll see that in this sort of what you might call a proto capitalistic society, interest is serving a number of different important functions. Well, the way I see negative rate is it’s a tax on capital, which is instituted by an unelected — RITHOLTZ: Central bank.

Valuation 59

Valuation Finance Investments Banking 59

Musings on Markets

JANUARY 28, 2024

In particular, there are wide variations in how risk is measured, and once measured, across companies and countries, and those variations can lead to differences in expected returns and hurdle rates, central to both corporate finance and investing judgments.

Hurdle Rate 117

Hurdle Rate Concentration Investments Finance 117

Musings on Markets

JULY 25, 2023

The graph below shows the sovereign CDS levels, by country: Source: Bloomberg ( July 2023 data ) There are three things to note, as you browse these numbers. That said, there is no intellectual firepower or research behind these numbers, since I am letting the default ratings agencies and risk measurement services carry that weight.

Currencies 52

Currencies Hurdle Rate Valuation Marketing 52

Musings on Markets

FEBRUARY 23, 2025

There are many who trust accountants to do this for them, using whatever is listed as debt on the balance sheet as debt, but that can be a mistake, since accounting has been guilty of mis-categorizing and missing key parts of debt. to3.5%) during the year.

Hurdle Rate 75

Hurdle Rate Marketing Investments IFRS 75

Barry Ritholtz

MAY 21, 2024

So it’s got this math angle where it, you know, it’s all numbers, but then there’s this behavioral angle and psychological angle where, you know, it’s, it’s kind of a fun problem to tackle. It’s kind of a silly number, but people are going to think you’re smart or dumb based on that number.

Finance 59

Finance Marketing Numbers Investments 59

Barry Ritholtz

NOVEMBER 25, 2024

Honest back testing, really looking at the numbers versus exaggerating returns and, and making up the claim that something’s live when it’s not. 12, 14 even that not a lot of numbers. So you’ve got, you’ve got a modeling hurdle rate that you need to figure out when you’re adding diversifiers.

Leverage 59

Leverage Investments Marketing Math 59

Barry Ritholtz

DECEMBER 26, 2023

And 00:06:38 [Speaker Changed] Door number one was much better than door number three in, in the circumstances. Accounting was very difficult. It’s about a 50% fail rate, something like that. When we talk about breadth, we’re talking about the numbers of advancers versus decliners. Maybe even more.

Marketing 64

Marketing Leadership Finance Investments 64