« March 2009 |
| May 2009 »
Continue reading "Tweets Apr 2009" »
Posted by Gatis Kokins on 30 April 2009 at 15:21 in Emo | Permalink
| | Digg This
| Save to del.icio.us
Studying one pan-Baltic enterprise, I came to the graphs of consolidated sales and net profit:
My somehow trained mathematician eye saw similarity between net profit graph and possible derivation of sales graph.
So, I derived sales graph, calculating "growth of sales" and plotted it against the net margin graph:
It looked pretty similar, I checked the correlation:
1) Sometimes textbook cases work also in real life;
2) In rapid growth environment expense growth is not catching gross income growth, net margin improves;
3) During slowdown we are bad and late in cost cutting and downsizing back to sustainable expense levels, net margin shrinks.
Posted by Gatis Kokins on 25 April 2009 at 15:12 in Economics | Permalink