Operating leverage – how it caused Gamestop (GME) to plunge into the red By Steady Compounder on Jun 10, 2020 08:28 am From the earlier post, we learned that not all growth is value-adding. Today, we are going to discuss an equally important concept – operating leverage. Not all sales growth has the same effect on profitability. With these 2 articles, I wish to highlight to readers that sales growth, profit growth, and value creation are distinct. …
New post from Steady Compounding
New post from Steady Compounding
New post from Steady Compounding
Operating leverage – how it caused Gamestop (GME) to plunge into the red By Steady Compounder on Jun 10, 2020 08:28 am From the earlier post, we learned that not all growth is value-adding. Today, we are going to discuss an equally important concept – operating leverage. Not all sales growth has the same effect on profitability. With these 2 articles, I wish to highlight to readers that sales growth, profit growth, and value creation are distinct. …