A Model of Sustainable Earnings Based on Financial ...

This effectively measures the growth rate in sales in the current period relative to the growth rate in NOA in the prior period. As ΔATO0 is a component of a Du Pont decomposition of ΔRNOA, its addition to the benchmark model means that ΔRNOA0 now captures the change in profit margin, ΔPM0 = OI0/Sales0 – OI-1/Sales-1, the complement of ... ................
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