Tag: cost of capital
Courtesy of Fair Loan Rate
There is an old management adage which says that “you cannot manage what you cannot measure”. This saying may be true in all parts of a company, but is especially pertinent in finance.
We’ve read so much about companies and businesses going under due to poor financial management. By chasing after relentless growth – at all costs – they have gone beyond their abilities to pay spiralling bills to suppliers, employees, and financiers. Other than indiscriminate borrowing, the other “sins” of the leadership and boards of these firms are their failure to respond to the true financial picture of their organisations.