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A comment on The coming long-run slowdown in corporate profit growth and stock returns [pdf] (2023). Parent comment

Re:The coming long-run slowdown in corporate profit growth a... by VirusNewbie on Wednesday September 04, 2024 @01:44PM (#41448444)
well, they're looking at earnings growth, not profit margins. You could have a company that increases profitability YoY and not grow revenue as well. It's less typical, but certainly possible with technology companies. I think this paper misses that fact.
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Re:The coming long-run slowdown in corporate profit growth a... by nine_k on Wednesday September 04, 2024 @03:11PM (#41449449)
This is fair. But the theoretical maximum of profitability is 100% of revenue. A company that increased their revenue 10x while keeping the same 10% profit margin (both numbers quite normal) achieved the same profit as if it kept the revenue the same and grew profitability to 100% (pure fantasy).

Also, larger streams of money create the economic multiplier effect.

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