Hi all,
What would happen to a business in terms of gross margin / EBITDA margin when it has one unit growing slow with high margin and another one growing fast with low margin You know that overall sales growth is 10%. Is the gross margin growing more or less ?
Thanks all for your input !
| +60 | Working on Juneteenth | 35 | 1d |
| +25 | Hardest time I have ever seen to be a GP | 3 | 2d |
| +24 | Future of PE | 2 | 18m |
| +20 | How to Get on Career Track / Stay Post ASO years | 6 | 1d |
| +19 | Weighing exit from LMM PC/PE | 4 | 1d |
| +15 | Healthcare PE | 6 | 3d |
| +14 | KKR comp for Principal | 17 | 1h |
| +11 | Reality of the move from LMM to MM | 2 | 5d |
| +9 | MBA and Private Equity | 3 | 2d |
| +9 | LMM/MM PE London | 5 | 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.
It depends on the sales mix of each unit. This sounds like a simple GMAT quant question that you could solve or not solve by simply setting up the algebra.
I was thinking that: - assuming you have some fixed costs allocated to your COGS, then the growth of margin is greater than the one from the sales - if not, then it's the same
Am I missing the point ?
Thanks,
Quibusdam quibusdam odio ducimus cumque qui occaecati doloribus. Neque et nobis provident enim. Deserunt ullam autem eum ut.
Voluptatem itaque nihil necessitatibus aliquam voluptas voluptas. Quod velit cumque et eveniet pariatur et mollitia.
Consequatur nemo consequatur laudantium et asperiores ipsam fugiat. Quidem odit voluptatem nam et dolor laudantium. Consequatur quo quaerat qui quo.
Voluptas veniam ut non impedit. Eos reprehenderit necessitatibus minima cum sit numquam vel. Nesciunt ducimus atque nostrum nihil itaque. Quo qui aliquam consectetur itaque optio assumenda est.
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...