Amazon: A Case Study in Tech Valuation

The final article in a four-part series on the drivers of success for shareholders in the technology industries.In 2014, Greg McFarlene wrote in “Amazon Never Makes Money But No One Cares” on Investopedia.com that if you totaled the cumulative net income since Amazon went public, it equated to wh...

By David Fedigan, Gregory V. Milano, and Arshia Chatterjee • July 26, 2016

Democrats Demand Clawback of Outsourcers’ Tax Breaks

Avowing a corporate tax agenda aimed at fighting outsourcing and keeping U.S. jobs at home, the Democratic Party Platform committee writes in the party’s 2016 platform that the nation must “claw back tax breaks for companies that ship jobs overseas, using the proceeds to reinvest in communities a...

By David Katz • July 26, 2016

Explore the Trendline➔

Tax policy shifts: What CFOs need to know to stay ahead

Discover how evolving tax policies are creating new opportunities and challenges for CFOs.

By CFO.com staff

In Tech, One Measure Rises Above the Rest

This is third article in a four-part series on the drivers of success for shareholders in the technology industries.In the previous article, we showed how growth and return measures are superior to margin measures when it comes to evaluating tech company success for shareholders. In this article,...

By Arshia Chatterjee, David Fedigan, and Gregory V. Milano • July 19, 2016

Intangible Assets: They’re Not What You Think They Are

For centuries, executives expertly managed the total productivity of tangible assets, such as plants and equipment. They monitored both efficiency and effectiveness because tangible assets, or “things,” historically accounted for more than 80% of business value.William Heitman But in the last 40 ...

By William Heitman • July 19, 2016

The Business of Politics

Political uncertainty is altering the spending plans of U.S. companies, according to the latest Duke University/CFO Magazine Global Business Outlook survey. Worried by the upcoming presidential election and continuing Washington dysfunction, nearly half of U.S. firms (47%) are pulling back on hir...

By CFO Editorial Staff • July 18, 2016

Avoiding Budget Busters

tFinance chiefs have to remain vigilant when it comes to keeping budgets in check. Many CFOs are using techniques such as zero-based budgets and rolling budgets to keep tabs on spending and to fine-tune forecasts. Check out these five articles on avoiding the budget blues.Who Should Decide Whethe...

By CFO Editorial Staff • July 16, 2016

Wells Fargo Matches Estimates But Stock Falls

Wells Fargo said Friday its second-quarter earnings fell 3% from a year earlier as low interest rates continued to weigh on its profitability despite strong growth in lending.Both profit and revenue matched analysts’ expectations but Wells Fargo shares dropped 2.5%, to $47.71, on the earnings ann...

By Matthew Heller • July 15, 2016

Avoid These Mistakes When Planning an Exit

Technology unicorns are seeing their valuations crushed, and public tech companies aren’t faring much better. People are wondering whether we’re headed for a correction. But regardless whether this balloons into a full-blown downturn, the tech fundraising climate is undoubtedly changing.Michael M...

By Michael Morgan • July 15, 2016

JPMorgan Posts ‘Big Revenue Surprise’ in Q2

JPMorgan Chase reported better-than-expected second-quarter results, with a jump in revenues easing fears of a hangover from the U.K.’s Brexit vote.The largest U.S. bank by assets kicked off the banking sector’s earnings season on Thursday by announcing it earned $6.2 billion, or $1.55 a share, i...

By Matthew Heller • July 14, 2016

Tesla Ends Buyback Program for Model S Cars

Tesla Motors has ended its popular resale value program for the entry-level Model S, freeing up cash as it seeks to boost total production.The buyback program guaranteed the resale value of a Model S after three years when purchased through one of Tesla’s loan financing plans. As Reuters reports,...

By Matthew Heller • July 14, 2016

Enabling “Eureka!”

CFOs around the world increasingly recognize that the standards for their finance functions’ responsiveness and credibility are being raised, and that yesterday’s processes and solutions will no longer be able to deliver information that provides a competitive advantage.To regain this advantage, ...

By CFO Editorial Staff • July 14, 2016

Wholesale Prices See Largest Jump in More Than a Year

Prices on U.S. goods and services rose 0.5% in June, the steepest increase in more than a year and reflective of rising energy and food prices, according to the Labor Department’s Producer Price Index, released Thursday.June’s results reflect an acceleration of price increases from U.S. producers...

By Christopher Hosford • July 14, 2016

Square-Off: What Kind of Corporate Tax Is Best?

With the Democratic and Republican Presidential conventions coming up soon, the perennial question of what to do about corporate taxes has predictably entered center stage.Gary Johnson, the Libertarian candidate for president, wants to abolish corporate and personal income taxes, substituting a s...

By David Katz • July 13, 2016

What’s the Best Corporate Tax? It Depends How You Define ‘Best’

What kind of corporate tax is best?John Gimigliano At the risk of appearing to dodge the question, I would argue that the answer depends on your answer to a more fundamental question: What do we want our tax system to achieve?We cannot design the best corporate tax system unless we can agree on w...

By John Gimigliano • July 13, 2016

Beware of a Tax Reform Revolution

It is somewhat ironic that many politicians, including numerous ones who refer to themselves as conservatives, espouse radical changes to our tax system. They claim our tax system is broken and requires a drastic transformation. I’m skeptical of following their guidance. Many of them and their pr...

By Philip G. Cohen • July 13, 2016

The Case for a Corporate Tax Cut Doesn’t Hold Up

The corporate income tax is once again under attack. Republican presidential candidate Donald Trump proposes to cut the corporate tax rate by more than half, from 35% to 15%, while Libertarian candidate Gary Johnson would repeal the tax entirely. Both argue that the corporate tax makes the United...

By Robert McIntyre • July 13, 2016

Slow-to-No Business Investment Growth Seen

Business investment is slowing down dramatically amid a sputtering global economy, heightened political uncertainty, a contraction in trade, and low commodity prices, according to the Equipment Leasing & Finance Foundation.Equipment and software investment is expected to increase by just 0.9%...

By Christopher Hosford • July 13, 2016

Warner Bros. Faulted Over Game Promotion

Warner Bros. Home Entertainment has been charged with misleading consumers by failing to disclose adequately that it paid YouTube “influencers” to post glowing video reviews of its Middle Earth: Shadow of Mordor game.The U.S. Federal Trade Commission said Monday that the reviews were “essentially...

By Matthew Heller • July 12, 2016

Are New Tax Rules for Out-of-State Retailers Unconstitutional?

It’s a wild and scary time in the history of sales tax collection. Okay, for those of you who don’t live and breathe tax every day, putting “wild” and “sales tax” in the same sentence may feel like a stretch. But bear with us.Clark Calhoun The long-standing rules that protect out-of-state retaile...

By Andy Yates and Clark Calhoun • July 11, 2016

Evaluating Cash Flow Strategies in the Wake of Global Uncertainties

Heightened by uncertainty in the wake of Brexit and the upcoming U.S. presidential election, forward-thinking finance executives are re-examining their cash management strategies. Improving the accuracy, consistency, and quality of cash data as well developing more accurate cash forecasts are top...

By CFO Editorial Staff • July 9, 2016

CFO Week in Review

In case you missed them, CFO offers the week’s most-read stories.The New-Look CFOModern finance chiefs have diverse professional backgrounds, meaning that accounting experience isn’t always the path to becoming CFO.Delta Reports $450 Million Loss on Fuel HedgeThe airline’s latest hedging loss hig...

By Kerry Maruna • July 9, 2016

Nordstrom Invests in Supply-Chain Software

Nordstrom has acquired a minority stake in supply-chain software firm DS Co. in a move to expedite delivery of online orders while keeping costs down.The retailer has been pursuing initiatives to increase efficiencies across its supply chain amid a sharp decline in sales at its luxury sales. It h...

By Matthew Heller • July 8, 2016

Goldman Sachs: Stocks Will Fall as Uncertainty Rises

Expect the stock market to be negatively impacted for the rest of the year by a variety of factors, including the vote by Britain to leave the European Union, the uncertainty of the current U.S. presidential campaign, and slow growth internationally, says Goldman Sachs, in a new note to clients.D...

By Christopher Hosford • July 8, 2016

Verizon Users Get Higher Rates, More Data

Verizon Wireless has revamped its pricing plans, betting that customers will pay higher rates for service in return for increased data allowances and other features.Verizon’s cheapest, or “S,” plan will now offer 2 gigabytes of shared data for $35 per month, up from $30 for 1 GB, while the medium...

By Matthew Heller • July 7, 2016

Boeing Takes Steps to Improve Cash Flow

Boeing has extended its vendor payment schedules and reduced factory inventory as the aerospace giant continues to try to conserve cash.The new payment terms are being rolled out this year, Reuters reported, with Boeing taking up to 120 days to pay, rather than 30 days as in the past. Inventories...

By Matthew Heller • July 7, 2016