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Impressive, until you realize that a basket of REITs over the same period would have earned 26%, if the investment trusts had been bought on 60% margin to boost their total effective leverage to the 80% levels that Blackstone deploys.
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The company said it had kept costs down and raised its gross profit margins, helping to boost profitability.
High fixed costs of dealerships, such as building rentals and overheads, mean they rely on the high margins from sales to boost profits.
As a consequence "while profits remain sensitive to the economic cycle, those waiting for the structural mean reversion in margins will continue to be disappointed," he says.Andrew Smithers of Smithers & Co, a consultancy, believes that executives are given incentives to boost margins in the short term at the expense of long-term value for shareholders.
Lower raw material prices are starting to boost margins, the company added.
One of Williams's challenges will be to boost margins, which have been on a downward spiral.
Sysco, America's largest food distribution group, provides advice to restaurant owners on how to boost margins in troubled times.
Most food firms either stayed the same size or shrank themselves in an effort to boost margins.
He is keen to boost margins first and pointed out that GSK is only in the first year of its three-year turnaround plan following a $20bn£13.7bnbn) asset swap with Novartis.
Now, as the icy wind of the credit crunch blows through the Alps, there are rumours the big ski firms will cut back on their capacity next year as they seek to boost margins.
VantagePoint.com and Farmland Industries, America's largest farmer-owned co-operative, are among companies establishing similar systems to track grain from seed to sale.Farmers are a beleaguered bunch, who welcome any means to boost margins.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com