Utilities

A company's earnings per share can grow in only four ways: more sales, profits growing faster than sales (operating leverage), wider margins, and less debt. Each bar is the share of companies where that engine worked in their latest year.

• Sales growth · Revenue up 10% or more42%
• Operating leverage · Operating income growing faster than a growing revenue52%
• Margin expansion · Operating margin up 1 point or more39%
• Debt reduction · Debt down 5% or more, or net cash6%