Business & Strategy |
Strategy & Change Management |
KMC [Knowledge Management Club]
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Activity:
3 comments
310 views
last activity : 07 06 2010 20:18:04 +0000
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What’s your opinion about Top line & Bottom line growth of an organization?
Do you think organization that provides good top line growth always gives good total return to shareholder (TRS) or the organization which perform poorly in terms of both top line & bottom line growth doesn’t provides good return to shareholders or the organization which provides good bottom line growth however lacks in top line growth can deploy good TRS for a long period of time.
If you think yes then you are wrong. Top Line & Bottom Line growth are always a good indicator of high return to shareholder but this is not always true, there are certain number of companies that were not rewarded in terms of Total returns to shareholders (TRS) in spite of giving robust revenue & profit.
Survey conducted by a reputed company for US economic cycle of 1984-1993 shows that 20% companies in spite of being providing faster revenue growth than the median, could not generate good total returns to shareholders (TRS) however there are other 20% companies whose revenue growth were very slow but they have provided excellent........
Please visit my blog URL to read the complete article.......
http://deepakagrawalblog.wordpress.com/2010/02/23/myth-about-top-line-bottom-line-growth/

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Mathew, thanx for your comment. After 2008 crisis several COCO bonds were issued same as I have mentioned an example of Credit Suisse but these bonds are not very successful because they triggers to regulatory ratio which is quite different from market... |
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