Working Capital
The value of assets a company has available to build its business. It is one measure of a company’s liquidity. Since average working capital tends to be different for different industries, it is probably more important to look at changes to a company’s WC over time and to compare it only to other companies in […]
Net Operating Working Capital
A traditional measure of a company’s liquidity and potential for growth. Net operating working capital is defined as non-interest bearing current assets minus non-interest charging liabilities: Net operating working capital = current assets – current liabilities Generally, net operating working capital is equal to cash, accounts receivables, and inventories less accounts payable and accruals. Currently, […]
Industrial Ecology
A field of study and practice that focuses on how industry can be developed or restructured to reduce environmental burdens throughout the product life cycle (extraction, production, use, and disposal) and encompasses a variety of related areas of research and practice, including: Material and energy flow studies (“industrial metabolism”) Dematerialization and decarbonization Technological change and […]
Environmental Economics
A branch of neoclassical economics that seeks to address environmental problems, such as pollution and negative externalities, using traditional economic mechanisms, such as taxes, tax incentives and subsidies. Environmental Economics differs from Ecological Economics in that it does not view the economy as a subsystem of the ecosystem, but rather as a separate sphere with […]
Ecological Economics
An interdisciplinary framework that seeks to merge the two historically separate fields of economics and ecology. It assumes that: 1) there is an inherent link between the health of the Earth’s ecosystem and the economic system created by human beings; 2) the economy is a subsystem of the earth’s ecological system; and 3) by understanding […]
ROR (Rate of Return)
The return on an investment, usually in present value, after adjustment for inflation. Like ROI, rates of return are usually measured in purely economic terms but can also include the costs and benefits associated with human and natural capital to give an organization a broader and more sustainable understanding of an investment. An evolved definition […]
ROI (Return on Investment)
The profit or loss expected or resulting from an investment. Returns on investment are usually measured only in economic terms but can also include the costs and benefits associated with human and natural capital to give an organization a broader and more sustainable understanding of an investment. ROI = final value (projected) / initial value
Vision (Corporate)
The state or world in which an organization seeks to create or participate within. Whereas a mission defines an organization’s direction and priorities, its vision is the description of the destination this direction is heading. A vision is often a description of an organization, market, or world that is different than current and embodies its […]
Mission (Corporate)
An organization’s ultimate purpose or reason for being. A company’s mission should define the opportunities or needs which the company seeks to address, what the company is doing to address those needs, and the principles or beliefs which guide the company’s work.
Venture Philanthropy
Philanthropy that draws upon the traditional venture capital model to invest in nonprofits and socially entrepreneurial organizations to build their capacity, rather than to support discrete programs. Venture philanthropists typically assess progress and track the outcomes of their investments in terms of the social value produced. They often maintain a close and active relationship with […]
