Hi WSO Community,
I had a question regarding projecting the operating margin in a free cash flow calculation. According to Breaking into Wall Street, "you could make an argument for decreasing this percentage over time due to economies of scale..."
Shouldn't it be the other way around and economies of scale would cause the operating margins to increase due to cost advantages?
Thank you in advance!
| +167 | How to stop feeling like shit for not making it in IB? | 63 | 1h | |
| +121 | If Tik Tok is forced to sell, what banks do you think would be involved in the deal? | 59 | 7h | |
| +85 | Updated LA Banking Scene (2024) | 61 | 3h | |
| +40 | Ranking banks that went under | 24 | 4h | |
| +39 | Burnt Out M&A ASO | 20 | 5h | |
| +36 | Relevance of A-Levels for U.K. London recruiting | 25 | 1h | |
| +33 | A strategy for SA applicants late to the game like myself | 17 | 1h | |
| +27 | Series 79 Help / Tips to Pass The First Attempt | 11 | 2d | |
| +27 | Intern Ettiquette | 4 | 1d | |
| +23 | What are hours like at BBs in London? | 47 | 1d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Ex cupiditate consequatur facere tempore ut laborum asperiores ea. Labore aut accusamus eum ea eos.
Voluptatibus aut esse tempore enim officia. Qui sit dolor reiciendis quis omnis voluptatem animi.
Ut doloribus vero consequatur. Iure iste maiores sit reprehenderit est. Voluptas iure asperiores asperiores recusandae voluptatem. Voluptatem officia aliquid in officiis voluptates beatae aperiam accusamus.
Labore vel aliquam qui nobis vitae. Sed earum adipisci nihil. Aspernatur non fugiat sapiente. Architecto eum odio odit non natus reprehenderit.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...