Margin arithmetic

Headcount, cost per head and incremental margin on growth, built into a target you can check against guidance.

• Activism and governance
• Valuation

1 idea that carry it

• TechniqueActivism and governanceLetter

  Activist margin arithmetic: headcount, cost per head and incremental margin, line by line

  Build a margin case from countable inputs, headcount, cost per head and incremental margin on growth, so that every disagreement is about a number.

  Activist situations, any margin expansion thesis, and the interview question of how you would improve a company's profitability.

  From Starboard Value's letter to Autodesk shareholders on margins and board change · Jeffrey Smith