Articles > finance (27)

Stock and Flow: Build Better Models

Nov 15, 2024 | 4 minute read

Stock and flow examples: 1) Capital stock; 2)...

stock and flow

How McKinsey Uses the SCR Framework for Powerful Slide Outlines

Sep 28, 2024 | 4 minute read

SCR framework is a powerful storytelling tool to...

mckinsey scr framework

Return on Invested Capital (ROIC) - Formula and Real World Examples

Sep 21, 2024 | 7 minute read

Understand ROIC and reinvestment rates for Google, Amazon,...

return-on-invested-capital

How much is Netflix worth in 2024? $US100bn

Jul 5, 2024 | 3 minute read

Netflix equity DCF valuation. Subscriber and ARPU metrics....

netflix equity value

How Costco avoids failure? Focus on what sucks

Apr 5, 2024 | 4 minute read

Costco's retail strategy: 1) Pay staff more and...

Top 5 US retailers

How to profit in a recession? Sell pinball machines

Mar 1, 2024 | 4 minute read

1) Whiffle Board the original pinball. 2) What...

how to profit in a recession

Principal Agent Problem - 4 Real Examples & Solutions

Feb 23, 2024 | 8 minute read

Managing conflicts of interest: 1) Ship captains killing...

principal-agent-problem

How to treat stock compensation when valuing companies?

Jan 19, 2024 | 4 minute read

SBC expense in DCF valuation. 1) What is...

SBC

Share Buybacks vs Dividends: Who wins?

Dec 23, 2023 | 4 minute read

Why dividends are better than share buybacks. Understand...

shareholder impact

How to Measure Total Shareholder Returns

Sep 22, 2023 | 2 minute read

TSR calculation and spreadsheet examples. Compare TSR performance...

total-shareholder-returns

IRR vs MIRR Formula Explained: Choose the Right Metric for Your Investments

Jul 28, 2023 | 4 minute read

Confused between IRR and MIRR? Discover which return...

MIRR formula

Chart Formatting: 5 Best Practices

Jun 23, 2023 | 2 minute read

Chart formatting tips: 1) Descriptive titles; 2) Fewer...

good-chart-formatting

4 Key Charts - When and How to Use Them

Jun 17, 2023 | 5 minute read

4 charts everyone should know: 1) Column Chart;...

profit-margin-column-chart

Understanding 6 Key Financial Ratios - Best Buy vs Netflix vs Meta vs Apple

May 20, 2023 | 6 minute read

1. Gross Margin; 2. Operating Margin; 3. FCF...

financial-ratios

Deprival Super Reaction Bias - Why it makes people go crazy?

Mar 10, 2023 | 3 minute read

Bias caused by loss of something almost possessed....

deprival-super-reaction

Availability Bias - Examples and How to Overcome

Dec 19, 2022 | 4 minute read

Availability heuristic occurs when we overestimate the frequency...

availability-bias

Cognitive Reflection Test - Examples of Reacting vs Checking

Dec 2, 2022 | 4 minute read

Why 50% of Harvard, MIT and Princeton students...

cognitive-reflection-test

What is the Time Value of Money with Examples - 4 Elements of TVM

Sep 10, 2022 | 3 minute read

Understanding the TVM with Aesop’s fables. When are...

time-value-of-money

How Much is YouTube Worth? Over US$180bn in 2022

Sep 6, 2022 | 17 minute read

Google acquired YouTube for US$1.6bn in 2006. In...

yt valuation comparison

How the US Air Force Ditched the "Average" and Saved Lives

Jul 1, 2022 | 3 minute read

The average is a myth. Understand the pitfalls...

beware_average

Why Invest in Exchange Traded Funds (ETFs)?

Apr 6, 2022 | 6 minute read

1) Why Invest in ETFs; 2) How ETFs...

S&P500

Financial Model Formatting - 3 Core Best Practices

Dec 3, 2021 | 2 minute read

Investment Banking Excel and Google Sheet formatting best...

COLORCODE

How Much is Alibaba Worth? US$900 billion in 2021

Jun 4, 2021 | 8 minute read

Alibaba operates three of the largest digital platforms...

global ecommerce

3 Decision Making Frameworks Startups can use to Navigate Uncertainty

Apr 11, 2020 | 7 minute read

3 useful decision making frameworks startups leaders and...

decision-making

What are the Fiduciary Duties of a Director?

Apr 10, 2020 | 5 minute read

Five basic fiduciary duties of a Board member...

board-role

The Role and Functions of Board of Directors

Dec 26, 2019 | 3 minute read

What is the role of the Board? What...

board-role

The Basics of Valuation

May 4, 2019 | 4 minute read

Understand the principles of intrinsic valuation. How to...

what would you pay