Add training workflow, datasets, and runbook

training_data/curated/text/1e8837af74bdcb5e6ba9db70957e76f3c0e4952ae27b304e08c8b0fa14284090.txt

@@ -0,0 +1,41 @@
+102  •   The Intelligent Option Investor
+Another case in which the normal profit range of a company may 
+change is through improvements in productivity. And although improve-
+ments to productivity can take a long time to play out, they can be ex-
+tremely important. The reason for this is that even if a company is in a 
+stage in which revenues do not grow very quickly, if profit margins are in-
+creasing, profit that can flow to the owner(s) will grow at a faster rate than 
+revenues. Y ou can see this very clearly in the following table:
+Year 0 1 2 3 4 5 6 7 8 9 10
+Revenues 
+($)
+1,234 1,271 1,309 1,348 1,389 1,431 1,473 1,518 1,563 1,610 1,658
+Revenue 
+growth (%)
+— 3 3 3 3 3 3 3 3 3 3
+OCP ($) 
+4 432 445 497 485 514 544 560 637 625 708 746
+OCP 
+margin (%)
+35 35 38 36 37 38 38 42 40 44 45
+OCP 
+growth 
+rate (%)
+— 3 12 –2 6 6 3 14 –2 13 5
+Even though revenues grew by a constant 3 percent per year over this 
+time, OCP margin (owner’s cash profit/revenues) increased from 35 to 
+45 percent, and the compound annual growth in OCP was nearly twice 
+that of revenue growth—at 6 percent.
+Thinking back to the earlier discussion of the life cycle of a company, 
+recall that the rate at which a company’s cash flows grew was a very important 
+determinant of the value of the firm. The dynamic of a company with a rela-
+tively slow-growing revenue line and an increasing profit margin is common. 
+A typical scenario is that a company whose revenues have been increasing 
+quickly may be more focused on meeting demand by any means possible rath-
+er than in the most efficient way. As revenue growth slows, attention starts to 
+turn to increasing the efficiency of the production processes. As that efficiency 
+increases, so does the profit margin. As the profit margin increases, as long as 
+the revenue line has some positive growth, profit growth will be even faster. 
+This dynamic is worth keeping in mind when analyzing companies 
+and in the next section, where I discuss the next driver of company value—
+investment level and efficacy.