Remove Hurdle Rate Remove Leverage Remove Manufacturing
article thumbnail

Data Update 6 for 2025: From Macro to Micro - The Hurdle Rate Question!

Musings on Markets

A key tool in both endeavors is a hurdle rate a rate of return that you determine as your required return for business and investment decisions. It deepens the acquaintance because you encounter hurdle rates in almost every aspect of finance, and it ruins it, by making these hurdle rates all about equations and models.

article thumbnail

Data Update 7 for 2025: The End Game in Business!

Musings on Markets

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.

Insiders

Sign Up for our Newsletter

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

Trending Sources

article thumbnail

World’s Best Supply Chain Finance Providers 2025

Global Finance

SCF also helps buyers and sellers mitigate the impact of high interest ratesproviding welcome relief from the rising cost of manufacturing goods. Financial institutions can better understand the risk profiles of small suppliers by leveraging alternative data and machine learning, thus expanding access to financing.

Finance 52
article thumbnail

The Corporate Life Cycle: Corporate Finance, Valuation and Investing Implications!

Musings on Markets

In the manufacturing-centered twentieth century, it took decades for companies like GE and Ford to scale up, but they also stayed at the top for long periods, before declining over decades. With declining businesses, facing shrinking revenues and margins, it is cash return or dividend policy that moves into the front seat.

article thumbnail

Data Update 8 for 2025: Debt, Taxes and Default - An Unholy Trifecta!

Musings on Markets

The cost of debt is lower than the cost of equity : If you review my sixth data update on hurdle rates , and go through my cost of capital calculation, there is one inescapable conclusion. Data Update 4 for 2025: Interest Rates, Inflation and Central Banks! Data Update 6 for 2025: From Macro to Micro - The Hurdle Rate Question!