Blog post

Growth percentages

January 28, 2021 · by Jan Schultink
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Most financial slides show an absolute number and its percentage growth for things like revenues, gross profit, operating profit, and operating income. But they also show margins: operating profit, gross profit, operating income as a % of sales. If the gross margin grows from 50% to 55%, is that 5% growth, or 10%?

Microsoft did it right in its last earnings presentation: explicitly name increases in margins as ‘points’. So going from 50% to 55% gross margin is a 5 points increase. See the example slide below

Mmm, now that we have a slide here, let’s talk about it. What is good:

What could improve:

In SlideMagic, I put the following together quickly (in the SlideMagic spirit)

What did I do?

I have added my slide to the template bank, you download it for free, or simply search for ‘Microsoft’ from within the SlideMagic app.

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