- liikevaihto kasvoi +34% noin +14,2 MEUR
- liiketulos kasvoi +3976% noin +10,6 MEUR
Kasvun kannattavuus oli jopa 75%, kun liiketoiminnan kannattavuus oli 20%. Kannattavuus paranee siis kohisten. No news, sanoisi tätä ennakoinut @Inderes
2/
Great value is sometimes hiding in plain sight, such as the value of INCREMENTAL RETURNS.
In this thread (🧵), we'll take a brief look at different cases built on this simple and under-addressed, yet quite powerful concept.
Best served with a hot cup of coffee...
1/
Incremental returns reveal the underlying profitability of future growth, while removing "legacy burden" of the business from the picture.
To get started, imagine a company with the following financials:
YEAR 1
Revenues 100
Earnings 10
YEAR 2
Revenues 120
Earnings 20
2/
First observations:
- Margins on year 1 were 10%
- Revenues grew by 20%
- Margins on year 2 were 17%
These numbers are obviously fine, albeit not stellar. However, there is more than meets the eye, which can be revealed with the concept of incremental returns.
3/
The best long-term businesses and investments are built on the mastery of CAPITAL ALLOCATION.
In this thread (🧵), we'll take a look at different ways to manage capital by well-known companies as examples.
Best served with a hot cup of coffee...
1/
In his excellent book "The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success", author William Thorndike concluded "great CEOs must understand capital allocation".