Wednesday, July 25, 2012
Margin squeeze modelling can be simple or complicated, but never trivial
Margin squeeze modelling can be simple or complicated, but never trivial - Analysys Mason Group: "The legal work surrounding margin (or price) squeeze allegations is extensive and complex. However, in these cases some kind of margin squeeze model will be used, which will form the foundation to prove or disprove the legal case. The margin squeeze model will present the underlying numerical comparison of costs, prices (revenue) and profit margins relevant to the business situation being tested. Margin squeeze models can be simple or complicated, and the choices made will always be argued to fit the case in question. These choices (which we structure as scale, scope, financial test and cost/price principles) strongly affect the complexity of the margin model, its inputs, assumptions, calculations and outputs" 'via Blog this'