Apr 10, 2022
In Self Help Forum
However, there are more EBIT Buy Email List dollars in total. Imagine, turning away profitable sales just because they are slightly less profitable Buy Email List units than your current units. That is what we do every day when we live the ratios. It happens Buy Email List frequently at all levels of organizations when they are not focused properly. This leaves available business for our Buy Email List competition to pick up and limits some of our growth. There are measures your investors care Buy Email List about and EBIT is the basis. Earnings per share are not influenced by revenue, but by the creation of EBIT dollars. If you are a private company it won't be value in EPS, but in the multiple applied Buy Email List to value the business. More EBIT dollars times the multiple leads to a Buy Email List higher value of their investment in the business. When we have Buy Email List management focused on the ratio rather than EBIT we have them focused on something not entirely aligned with our investors. When I hear a business unit President or CEO describe a business as a 15% business I know that Buy Email List cascades through the management team as a company led by the ratios not by the earnings.