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Low-margin businesses can also be wealth generators. Here's how

We also provide examples of three companies that optimise volume to beat their margin business

Unlocking wealth with ROCE: Beyond operating margins

Investors often associate high margins with long-term sustainability for companies. They believe higher margins provide a safety net to tackle challenging business environments. While this notion holds merit, solely relying on operating margin may cause you to overlook promising wealth-creating opportunities.

This article was originally published on February 02, 2024.


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