supply chain financial analysis - massachusetts...

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SupplyChainFinancialAnalysis

JarrodGoentzelgoentzel@mit.edu

JarrodGoentzelgoentzel@mit.edu

JarrodGoentzelgoentzel@mit.edu

2

JarrodGoentzelgoentzel@mit.edu

Source:Higgins,R.AnalysisforFinancialManagement.10thed.McGraw-HillIrwin,2011

ThefirstprincipleinacommonMBAfinancetextbook

“Acompany’sfinancesandoperationsareintegrallyconnected.”

Whyisoperationsundervalued?

• “Inourcompany,operationsisnotglamorous.Dealsare.”

• Operationsisabranchofengineeringrequiringadifferentskillsetandmindset

• Topmanagers– whoenteredthroughfinance,strategy,ormarketing– areignorantaboutoperationsanduninterestedinlearningmore,relyingonotherstomindthedetailsofactualwork

• “Financialdatadominatethediscourseinthemodernorganization,althoughoperationalperformanceisthedriveroffinancialresults.”

JarrodGoentzelgoentzel@mit.edu

Source:“DeepChange:HowOperationalInnovationCanTransformYourCompany,”MichaelHammer,HarvardBusinessReview,Vol.82Issue4,April2004,pp.84-93.

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Answerthesequestionsforyourfirm

• WhatfinancialKPIsdoyouusetomeasuresupplychainperformance?

• Whatfinancialanalysisdoyouusetomakesupplychaindecisions?

JarrodGoentzelgoentzel@mit.edu

TheLanguageofFinance

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4

Thelanguageoffinance

• FinancialStatements– BalanceSheet– IncomeStatement

• FinancialAnalysis– Ratios– Acronyms(ROA,ROIC,EVA,…)

JarrodGoentzelgoentzel@mit.edu

BalanceSheet

• Snapshotofthefirm’svalue– Approximation:accountantsmeasuredvalueatthetimethetransactiontookplace– Bookvalueisthelowerofcostormarketvalue

• Assets(listedinorderofliquidity)– Current:cash,marketablesecurities,accountsreceivable,inventories– Fixed:property,plant,equipment(lessaccumulateddepreciation)– Intangible:patents,goodwill…“growthassets”

• Liabilities(listedinorderinwhichtheymustbepaid)– Current:accountspayable,notespayable,…– Long-term:notes,bonds,deferredincometaxes,…

• Shareholders’equity(a.k.a.networth)– Stock:preferred,common– Retainedearnings

JarrodGoentzelgoentzel@mit.edu

Lasttobepaidifafirmisdissolved

consumedinthecurrentyear

consumedinthefuture

consumedtheoretically

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IncomeStatement

• Performancerecordbetweensnapshots• Explainswhyretainedearningshaschangedovertime

– Sales(netofmarkdowns)– Costofgoodssold– GROSSINCOME– Selling,general&administrative(SGA)expenses– OPERATINGINCOME– Depreciation&amortization– OPERATINGINCOME

– Interestexpense– Othernonoperatingexpenses/income

– Incometaxes– Extraordinaryitems– NETINCOME

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EBITDA

EBIT

EIATBS

Financialstatements

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“Financialstatementsarelikefineperfume;tobesniffedbutnotswallowed.”

− AbrahamBrilloff

Source:Higgins,R.AnalysisforFinancialManagement.10thed.McGraw-HillIrwin,2011.

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Financialanalysis

JarrodGoentzelgoentzel@mit.edu

“accountantstrytomeasurethecurrentstandingandimmediatepastperformanceofafirm,whereasfinancialanalysisismuchmoreforwardlooking.”

− Aswath Damodaran,SternSchoolofBusiness

Source:http://pages.stern.nyu.edu/~adamodar/New_Home_Page/AccPrimer/accstate.htm

Financialanalysis

• Analogyaboutmanagingacompany’sfinancialperformance– stick,throttle,rudder

• “Weanalyzefinancialstatementsforthepurposeof– evaluatingperformanceand– understandingtheleversofmanagementcontrol.”

JarrodGoentzelgoentzel@mit.edu

Source:Higgins,R.AnalysisforFinancialManagement.10thed.McGraw-HillIrwin,2011.

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Financialanalysis

• Higgins’threeleversofmanagementcontrol– Netmargin:Netincome/Sales– Assetturnover:Sales/Assets– Financialleverage:Assets/Shareholders’equity

• Studythe“tiesbetweenacompany’soperatingdecisions…anditsfinancialperformance.”– “Operatingdecisionsaretheleversbywhichmanagementcontrolsfinancialperformance.”

– Examplesgiven:howmanyunitstomakethismonth,howtopricethem

JarrodGoentzelgoentzel@mit.edu

Source:Higgins,R.AnalysisforFinancialManagement.10thed.McGraw-HillIrwin,2011.

DuPontanalysis

• DuPontanalysisisbasedonareturn-on-investmentformuladevelopedin1914byaDuPontexplosivessalesmannamedDonaldsonBrownandusedbythecompany.Mr.BrownlateruseditasCFOatGeneralMotors,butitwasalreadyknownastheDuPontformula.

• Inessence,itisasimplecombinationoftworatiosSource:Flesher,D.L.,&Previts,G.J.(2013).DonaldsonBrown(1885-1965):thepowerofanindividualandhisideasovertime. TheAccountingHistoriansJournal,79-101.

𝑅 = 𝑇×𝑃where𝑅 = rateofreturnoncapitalinvested,𝑇 = rateofturnoverofinvestedcapital,and𝑃 = percentageofprofitonsales

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DuPontanalysis

JarrodGoentzelgoentzel@mit.edu

assets TotalSalesoverAsset turn =

SalesincomeNet marginNet =

overAsset turn margin Net ROA ´=

Equityassets Totalleverage Financial =

leverage FinancialoverAsset turnmarginNet ROE ´´=

InventoryTurnover, anarrowerfocusthanAssetTurnover,isoftenametricforsupplychainprofessionals

GrossorOperatingMarginisamorecommonmetricforsupplychainprofessionalsthanNetMargin

DuPontanalysis

• TheDuPontformulais:

𝑁𝑒𝑡𝑀𝑎𝑟𝑔𝑖𝑛 = 𝑁𝑒𝑡𝐼𝑛𝑐𝑜𝑚𝑒

𝑆𝑎𝑙𝑒𝑠 𝐴𝑠𝑠𝑒𝑡𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 = 𝑆𝑎𝑙𝑒𝑠

𝑇𝑜𝑡𝑎𝑙𝐴𝑠𝑠𝑒𝑡𝑠

𝑅𝑂𝐴 = 𝑁𝑒𝑡𝑀𝑎𝑟𝑔𝑖𝑛×𝐴𝑠𝑠𝑒𝑡𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟

JarrodGoentzelgoentzel@mit.edu

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DuPontanalysis

• TheformulacommonlyusedtodayfocusesonROEandincorporatesfinancialleverage

𝑁𝑒𝑡𝑀𝑎𝑟𝑔𝑖𝑛 = 𝑁𝑒𝑡𝐼𝑛𝑐𝑜𝑚𝑒

𝑆𝑎𝑙𝑒𝑠

𝐴𝑠𝑠𝑒𝑡𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 = 𝑆𝑎𝑙𝑒𝑠

𝑇𝑜𝑡𝑎𝑙𝐴𝑠𝑠𝑒𝑡𝑠

𝑅𝑂𝐸 = 𝑁𝑒𝑡𝑀𝑎𝑟𝑔𝑖𝑛×𝐴𝑠𝑠𝑒𝑡𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟×𝐹𝑖𝑛𝑎𝑛𝑐𝑖𝑎𝑙𝐿𝑒𝑣𝑒𝑟𝑎𝑔𝑒

𝐹𝑖𝑛𝑎𝑛𝑐𝑖𝑎𝑙𝐿𝑒𝑣𝑒𝑟𝑎𝑔𝑒 = 𝑇𝑜𝑡𝑎𝑙𝐴𝑠𝑠𝑒𝑡𝑠𝐸𝑞𝑢𝑖𝑡𝑦

JarrodGoentzelgoentzel@mit.edu

GMROI

• GMROI=GrossMarginReturnOnInventoryInvestment

• NarrowerfocusthanDuPont• Usefulinevaluatinginventorydecisions,andtheirimpactonprofitability

𝐺𝑟𝑜𝑠𝑠𝑀𝑎𝑟𝑔𝑖𝑛 = 𝐺𝑟𝑜𝑠𝑠𝑃𝑟𝑜𝑓𝑖𝑡

𝑆𝑎𝑙𝑒𝑠𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟∗ =

𝑆𝑎𝑙𝑒𝑠𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦

𝐺𝑀𝑅𝑂𝐼 = 𝐺𝑟𝑜𝑠𝑠𝑀𝑎𝑟𝑔𝑖𝑛×𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟

*𝑡ℎ𝑖𝑠𝑣𝑒𝑟𝑠𝑖𝑜𝑛𝑜𝑓𝑡ℎ𝑒𝑟𝑎𝑡𝑖𝑜𝑑𝑜𝑒𝑠𝑛𝑜𝑡𝑢𝑠𝑒𝐶𝑂𝐺𝑆𝑎𝑠𝑡ℎ𝑒𝑛𝑢𝑚𝑒𝑟𝑎𝑡𝑜𝑟

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Financeandsupplychainworktogethertocreatestockholdervalue

JarrodGoentzelgoentzel@mit.edu

Div

iden

dInvestors

(Equity)

Firm

Investors

(Debt)

Operational Assets

Firm invests

Future cash flows: revenues, expenses, etc.

Operations/supplychain:usefundstogeneratereturns

Finance:acquirefunds

Finance:allocatefunds

Leversofperformancefor10diversecompanies,2010

JarrodGoentzelgoentzel@mit.edu

Source:Higgins,R.AnalysisforFinancialManagement.10thed.McGraw-HillIrwin,2011.

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Overallmeasureoffinancialperformance• Isthereasinglemetricthatcanreflectthefirm’sfinancialperformanceforinvestors?

• forexecutives?

• ReturnonEquity

• ReturnonAssets 𝑅𝑂𝐴 = 𝑁𝑒𝑡𝐼𝑛𝑐𝑜𝑚𝑒𝑇𝑜𝑡𝑎𝑙𝐴𝑠𝑠𝑒𝑡𝑠

𝑅𝑂𝐸 = 𝑁𝑒𝑡𝐼𝑛𝑐𝑜𝑚𝑒𝐸𝑞𝑢𝑖𝑡𝑦

JarrodGoentzelgoentzel@mit.edu

Specificmeasuresoffinancialperformance• Revenuegrowth

– Salesgrowth=(Salest/Salest-1)- 1– CompoundAnnualGrowthRate(CAGR)=(Salest/Salest-n)1/n- 1

• Operatingmargin– Grossmargin=GrossIncome/Sales– Operatingmargin=OperatingIncome/Sales– Netmargin=NetIncome/Sales

• Assetproductivity– Assetturnover=Sales/TotalAssets– Inventoryturnover=COGS/AverageInventory– Accountsreceivableturnover=CreditSales/AverageAccounts

Receivable– Accountspayableturnover=COGS/AverageAccountsPayable– Daysofinventoryoutstanding=AverageInventory/(COGS/365)

JarrodGoentzelgoentzel@mit.edu

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Principalratiodefinitions(Higgins)*

JarrodGoentzelgoentzel@mit.edu

Source:Higgins,R.AnalysisforFinancialManagement.10thed.McGraw-HillIrwin,2011.

*Excludingtheleverageandliquidityratios

Optiontoaddworkingcapital

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Ratiosdependontheindustry(upperquartile,median,lowerquartile)

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Source:Higgins,R.AnalysisforFinancialManagement.10thed.McGraw-HillIrwin,2011.

Ratiosdependontheindustry(upperquartile,median,lowerquartile)

JarrodGoentzelgoentzel@mit.edu

Source:Higgins,R.AnalysisforFinancialManagement.10thed.McGraw-HillIrwin,2011.

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Ratioanalysisadvice

• Therearenotany“correct”valuesforratios• Ratiovaluesneedtobeunderstoodincontext– Comparewithindustryaverages– Comparewithspecificcompetitors– Observetrendsovertime

• Developaframeworkofseveralratiostomonitor• Incombination,thesecluesmaytellaninterestingstory

JarrodGoentzelgoentzel@mit.edu

Usingratioseffectively

• Ratiovaluesneedtobeunderstoodincontext• Usually,no“correct”valuesforratios• Relyonruleofthumbassessmenttechniques,comparisonwithindustryaveragesandspecificcompetitors,andlookingfortrends

JarrodGoentzelgoentzel@mit.edu

Source:Higgins,R.AnalysisforFinancialManagement.10thed.McGraw-HillIrwin,2011.

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YouarenowreadytobeCEO

SunflowerNutraceutical(SNC)Simulation

JarrodGoentzelgoentzel@mit.edu

SunflowerNutraceutical(SNC)

• HowdidyoulikebeingCEO?• Whatwasyourobjectiveinmakingdecisions(inrankorder)?

• Whatapproachesdidyouusetoevaluateoptions?

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SunflowerNutraceutical(SNC)results

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TwogoalsoftheCEO

• ProvideShareholderValue• …andstayoutofjail

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BernardJ."Bernie"Ebbersco-foundedthetelecommunicationscompanyWorldComandwastheCEO.In2005,hewassentencedto25yearsinprisonforhisroleinthe$11billionaccountingfraudthatbroughtdownthecompany.

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BalancedScorecard

• “Ultimately,causalpathsfromallthemeasuresonaScorecardshouldbelinkedtofinancialobjectives.”

• “Wehavefoundthatcompaniesusethreefinancialthemestoachievetheirbusinessstrategies:– RevenueGrowthandMix– CostReduction/ProductivityImprovement– AssetUtilization/InvestmentStrategy”

Source:Kaplan,R.S.,&Norton,D.P.(1996).Linkingthebalancedscorecardtostrategy. Californiamanagementreview, 39(1),53-79.

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Source:Kaplan,R.S.,&Norton,D.P.(2001).Transformingthebalancedscorecardfromperformancemeasurementtostrategicmanagement:PartI. Accountinghorizons, 15(1),87-104.JarrodGoentzelgoentzel@mit.edu

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JarrodGoentzelgoentzel@mit.eduSource:http://www.maaw.info/ArticleSummaries/ArtSumKaplanNorton2001.htm

JarrodGoentzelgoentzel@mit.edu

Source:website,TradeDynamics,LLC

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JarrodGoentzelgoentzel@mit.edu

Source:website,FinlisticsSolutions

DeloitteEnterpriseValueMap

Source:Lukac,E.G.,&Frazier,D.(2012).Linkingstrategytovalue. JournalofBusinessStrategy, 33(4),49-57.

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DeloitteEnterpriseValueMap

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Downloadthefullmap:http://public.deloitte.com/media/0268/enterprise_value_map_2_0.pdf

GoaloftheCEO

• ProvideShareholderValue

• DriversofShareholderValue– RevenueGrowth– OperatingMargin– AssetProductivity

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Supplychainprofessionalscanaffectallthree!

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Driversofshareholdervalue

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RevenueGrowth

AssetProductivity

OperatingMargin

Risk

Leverage

Howdoessupplychainperformancemakeanimpactonfinancialresults?

• Tradeoffsexist• Wheredoyoufocus?JarrodGoentzelgoentzel@mit.edu

AssetProductivityOperatingMargin

RevenueGrowth

Responsiveness(productavailability)Capability(newmarkets)

Leanness(reduceassets)Agility(adaptcapacities)

Leanness(reducecost)Segmentation(identifyopportunities)

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SunflowerNutraceutical(SNC)analysis

JarrodGoentzelgoentzel@mit.edu

SunflowerNutraceutical(SNC)analysis

JarrodGoentzelgoentzel@mit.edu

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SunflowerNutraceutical(SNC)analysis

JarrodGoentzelgoentzel@mit.edu

SunflowerNutraceutical(SNC)analysis

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DuPontassessestheOperatingMargin–AssetProductivitytradeoffatahighlevel

“ProfitPath” “TurnoverPath”SameDestination:ROA

RevenueGrowth

AssetProductivity

OperatingMargin

JarrodGoentzelgoentzel@mit.edu

DoyouseeanyextremeexamplesofProfitPathandTurnoverPath?

JarrodGoentzelgoentzel@mit.edu

Source:Higgins,R.AnalysisforFinancialManagement.10thed.McGraw-HillIrwin,2011.

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Leveragedrivesvalue+increasesriskRevenueGrowth

AssetProductivity

OperatingMargin

Risk

Leverage

JarrodGoentzelgoentzel@mit.edu

Overallmeasureoffinancialperformance• ROA=NetIncome/TotalAssets• ROE=NetIncome/Equity• Bothmeasurescanbedistortedbyfinancialleverage,i.e.moredebt

CompanyD CompanyEEBIT $280 $280InterestExpense $180 $0EBT $100 $280IncomeTaxes(40%) $40 $112NetIncome $60 $168

TotalAssets $2,000 $2,000

LongTermDebt(10%) $1,800 $0TotalStockholder'sEquity $200 $2,000TotalLiabilities&Equity $2,000 $2,000JarrodGoentzelgoentzel@mit.edu

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ROIC

• ROIC=ReturnonInvestedCapital– Returnsonallcapitalforinvestorsseekingareturn– Notonlyequity

• ROIC=NOPAT/InvestedCapital• NetOperatingProfitAfterTax(NOPAT)

– NOPAT=EBIT(1- Taxrate)– Earningsaftertaxasifitwereallequityfinanced(i.e.,not

consideringinterestexpenseortaxbooks)• InvestedCapital

– IC=Interest-bearingDebt+Equity– Sumofallsourcesofcashonwhichareturnmustbeearned

(i.e.,notincludingaccountspayable)– Youmaywanttosubtractexcesscash– PreferthebookvalueofInvestedCapital(i.e.thevalue

invested)ratherthanthemarketvalueJarrodGoentzelgoentzel@mit.edu

ROIC

• ReturnonInvestedCapitala.k.a.RONA(ReturnonNetAssets)

• ROIC=EBIT(1-Taxrate)/(Interest-bearingdebt+Equity)

• Numerator:earningsaftertaxifitwereallequityfinanced(i.e.,notconsideringinterestexpenseortaxbooks)

• Denominator:sumofallsourcesofcashonwhichareturnmustbeearned

JarrodGoentzelgoentzel@mit.edu

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ROICisnotaffectedbyfinancingscheme

JarrodGoentzelgoentzel@mit.edu

Source:Higgins,R.AnalysisforFinancialManagement.10thed.McGraw-HillIrwin,2011.

BalanceSheet

IncomeStatement

ROICisnotaffectedbyfinancialleverage

• ROICisagoodmeasureforsupplychainperformance– Itisnotconfoundedbyfinancingstrategies– Itshowsthefundamentalearningpowerofthefirm,i.e.,createdbyoperations

CompanyD CompanyEEBIT $280 $280InterestExpense $180 $0EBT $100 $280IncomeTaxes(40%) $40 $112NetIncome $60 $168

TotalAssets $2,000 $2,000

LongTermDebt(10%) $1,800 $0TotalStockholder'sEquity $200 $2,000TotalLiabilities&Equity $2,000 $2,000

CompanyD CompanyEROE 30.0% 8.4%ROA 3.0% 8.4%ROIC 8.4% 8.4%

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EVA™

• EVA™=economicvalueadded=NOPAT– (IC*COC)

• where– IC=investedcapital– COC=costofcapital[i.e.WACC]– NOPAT=netoperatingprofitaftertaxes[i.e.EBIT*(1-TaxRate)]

• Transformaccountingprofitintoeconomicprofit– Convertaccrual-basedearningsintoacash-basedNOPAT– Converttotalassetstoinvestedcapital– Assessthequantityofcapitalusedtogeneratetheincome– ThecomplexityandefforttoadjustGAAPisaweaknessofEVA

JarrodGoentzelgoentzel@mit.eduNote:EVA™isatrademarkedsymbolof Stern,Stewart&Co.

Simplebottomline

Ifeconomicvalueaddedispositiveinagivenyear,thefirmhasearnedmorethan

theamountrequiredtocompensatedebtholdersandshareholders

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EconomicValueAdded

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SALES

COGS

GROSSMARGIN

TOTALEXPENSES

NETPROFIT(EBIT)

TAXES

NOPAT

CAPITALCHARGE

TOTALCAPITAL

COSTOFCAPITAL(%)

CURRENTASSETS

FIXEDASSETS

OTHERCURRENTASSETS

INVENTORY

EVA

−

−

−

+

+

X

−

OTHER+

JarrodGoentzelgoentzel@mit.edu

Source:“Supplychainmetrics,”DouglasM.LambertandTerranceL.Pohlen.InternationalJournalofLogisticsManagement,Vol.12No.1,2001,pp.1-19.

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JarrodGoentzelgoentzel@mit.edu

Source:“Supplychainmetrics,”DouglasM.LambertandTerranceL.Pohlen.InternationalJournalofLogisticsManagement,Vol.12No.1,2001,pp.1-19.

Example:supplychaintradeoff

JarrodGoentzelgoentzel@mit.edu

New Proposal

100,000$

86,500$ 11,500$ 75,000$

13,500$ 5,130$ 8,370$

60,000$ 44,000$ 16,000$

6,000$ 4,400$ 1,600$

2,370$ 103.0%

Base

Revenues 100,000$

Operating Costs - 85,000$ SC 10,000$ Non-SC 75,000$

EBIT = 15,000$ Taxes 38% - 5,700$ NOPAT = 9,300$

Capital 70,000$ SC 54,000$ Non-SC 16,000$

Cost of Capital 10%Capital Charge - 7,000$

SC 5,400$ Non-SC 1,600$

EVA = 2,300$

Base

Revenues 100,000$

Operating Costs - 85,000$ SC 10,000$ Non-SC 75,000$

EBIT = 15,000$ Taxes 38% - 5,700$ NOPAT = 9,300$

Capital 70,000$ SC 54,000$ Non-SC 16,000$

Cost of Capital 10%Capital Charge - 7,000$

SC 5,400$ Non-SC 1,600$

EVA = 2,300$

New Proposal

100,000$

86,500$ 11,500$ 75,000$

13,500$ 5,130$ 8,370$

60,000$ 44,000$ 16,000$

6,000$ 4,400$ 1,600$

2,370$ 103.0%

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Example:supplychainimprovement

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Ops better 10%

100,000$

84,000$ 9,000$

75,000$

16,000$ 6,080$ 9,920$

70,000$ 54,000$ 16,000$

7,000$ 5,400$ 1,600$

2,920$ 127.0%

Base

Revenues 100,000$

Operating Costs - 85,000$ SC 10,000$ Non-SC 75,000$

EBIT = 15,000$ Taxes 38% - 5,700$ NOPAT = 9,300$

Capital 70,000$ SC 54,000$ Non-SC 16,000$

Cost of Capital 10%Capital Charge - 7,000$

SC 5,400$ Non-SC 1,600$

EVA = 2,300$

Cap better 10%

100,000$

85,000$ 10,000$ 75,000$

15,000$ 5,700$ 9,300$

64,600$ 48,600$ 16,000$

6,460$ 4,860$ 1,600$

2,840$ 123.5%

EVAisalignedwithNPV

ThepresentvalueofEVAsfromagivenprojectismathematicallyequivalenttotheNPVoftheproject

JarrodGoentzelgoentzel@mit.edu

32

EVAisnotnew,sowhyisitpopular?

• Consultantsaregoodatrepackagingoldideas– BasicideausedbyGeneralMotorsin1920s– LabeledbyGeneralElectricin1950sas“residualincome”– TrademarkedbySternStewartin1990sasEVA™(withfurthernewterminologysuchasNOPAT)

• Uniformity:itcanbeusedforthreecrucialmanagementfunctions– Investmentanalysis(insteadofNPV,IRR,BCR)– Businessunitperformanceappraisal(insteadofROE,ROA)– Compensationincentive(turnmiddlemanagersinto“owners”)

• ItismorestreamlinedthanrelyingonahostofmeasuressuchasNPV,IRR,BCR,ROE,ROIC,EPS,etc.

JarrodGoentzelgoentzel@mit.edu

JarrodGoentzelgoentzel@mit.edu

Source:Higgins,R.AnalysisforFinancialManagement.10thed.McGraw-HillIrwin,2011

“EVApromisestocompletethetransformationofvaluecreationfromameresloganintoapowerfulmanagementtool,onethatmayatlastmove

modernfinanceoutoftheclassroomandintotheboardroom– andperhapsevenontotheshopfloor.”