This is the measure of output (taken as operatingprofit after tax and some other adjustments) less input (taken as the annual rental charge on the total capital employed, both debt and equity).
Sony said operatingprofit -- earnings before tax, depreciation and other adjustments -- would probably remain static this year at Y230bn, even as its sales increase by an expected 10 per cent thanks in part to more advantageous exchange rates.
Marsh relies on insurance brokerage for 60% of revenue and two-thirds of operatingprofit (earnings excluding realized investment gains and losses and other unusual items).
Together with other currency rate adjustments, the company is looking at a JPY 50 billion drop in operatingprofit from this change, and is factoring this into profit forecasts.
These industries, then, have a smaller operating cushion they receive fewer cents of profit for each dollar of revenue brought in than other industries.