If revenue is $100 and EBITA margin is 30%, EBITA = $30. If EBITA margins go to 22%, then to maintain EBITA at $30 requires revenue of (30/22%) = $136.4 revenue.
Therefore, revenue has to go up 36.4% (from 100 to 136.4) to offset the margin decline, not 50%.
MVF Price at posting:
$1.24 Sentiment: None Disclosure: Not Held
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