Companies usually start out rapidly, then slow down and eventually halt. To mistake their initial rate of growth as an indication of future trends is to dangerously overestimate them. Using the Profit Margin as a Yardstick _Perhaps the surest measurement of corporate growth is profit margin. A widening profit margin always means better cost control, lower production cost and other positive management features which are classic characteristics of a growth company. Some see a salient growth feature in the plowback of a greater portion of earnings in the business instead of paying them out in dividends. A higher percentage of earnings thus retained does not, however, necessarily mean growth.

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