Grow your way to the top? Some common ideas about Am Law 100 profit margins don’t hold up, a five-year analysis shows. Amy Kolz reports
Margins matter. As most Am Law 100 firms faced another year of revenue growth that was weak at best, profit margins – the measure of how efficiently a firm converts revenues to profits – became more important than ever. No longer able to count on a swelling tide of revenue to boost earnings, firms must do more with less to increase or even preserve their partners’ profits.
