
HOW ARE EARNINGS RELATED TO REVENUES?QUESTIONSWhy is it that earnings can grow three times as fast as revenues?How can the bottom line grow faster than the top?OBJECTIVESThe aim is to increase the ratio of net earnings to gross revenues. And also increase earnings per share.Cutting costs and increasing productivity are ways to increase efficiency. The board could also organise to reduce the number of shares through buybacks.EXAMPLEHere's...